Bank

Bitcoin ETF

Bitcoin

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-miners-ramp-up-network-capacity" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Miners Ramp Up Network Capacity</a><br></p>
<p style="text-align: justify"><a href="https://en.bitcoinhaber.net/what-triggers-bitcoins-price-movements" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC) miners are showing confidence in the <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">market</a> by boosting network capacity, even as the cryptocurrency’s price experiences a decline. This week, the hashrate—reflecting the network’s processing power—reached a new all-time high, signaling a robust recovery in the mining sector.</p>
<h2 id="surge-in-hashrate-efficiency">Surge in Hashrate Efficiency</h2>
<p style="text-align: justify">The mining sector’s resurgence follows a significant sell-off triggered by Bitcoin’s price drop. On August 5, miners offloaded 19,000 BTC, the highest outflow since March 18, to cover rising operational costs. Concurrently, Bitcoin’s price dipped to $49,000. Despite these challenges, miners remain optimistic, as evidenced by the hashrate hitting a record 627 exahash/second, according to CryptoQuant.</p>
<h2 id="what-indicates-miner-capitulation">What Indicates Miner Capitulation?</h2>
<p style="text-align: justify">Hashrate refers to the computational power used by miners to generate new Bitcoins and validate transactions. Given the high energy and equipment costs, only a few mining devices were profitable earlier in July. CryptoQuant’s <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data revealed</a> a rise in miner outflows after Bitcoin’s price hit $49,000, suggesting potential miner capitulation. Profit margins for miners have plummeted to 25%, the lowest since January 2024.</p>
<h2 id="insights-and-implications">Insights and Implications</h2>
<p style="text-align: justify"><strong>Key Inferences:</strong></p>
<p style="text-align: justify">– Significant outflows of BTC by miners often coincide with local price bottoms.<br> – Miner profit margins are a critical indicator of sector health.<br> – Record hashrate levels highlight miner optimism and operational resilience.<br> – Historical patterns show miner capitulation often precedes price rebounds.</p>
<p style="text-align: justify">Historically, miner capitulations have occurred around local bottoms in Bitcoin’s price during bull markets. Since 2023, increased miner outflows have aligned with these troughs, such as post-Silicon Valley Bank collapse in March 2023 and post-spot Bitcoin ETF launch correction in January 2024.</p>
<p style="text-align: justify">Currently, Bitcoin is trading at around $61,000, up 2.8% in the past 24 hours. The continued strength and resilience of miners provide a hopeful outlook for the future performance of the leading cryptocurrency.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-miners-ramp-up-network-capacity" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Miners Ramp Up Network Capacity</a></h5>

Bitcoin Miners Ramp Up Network Capacity

Table of Contents

BH NEWS

Other articles published on Aug 14, 2024

Exodus wallet posts 80% rise in Q2 revenue with $9.6M in losses

Crypto World Faces Call for Token Distribution Reforms

Mt. Gox: $2 Billion in Bitcoin on the Verge of Release?

ADA Price Faces Declining Activity

Ethereum Open Interest Crashes 40%—Here’s Why It Could Be a Big Deal

Binance Delists Trading Pairs

Join our free newsletter for daily crypto updates!