The total computing power in the Bitcoin network has reached a new all-time high: For the first time since the mining rewards were halved in May 2020, 125 EH / s were reached. The hash rate value, whose moving average is now 124.4 EH / s for seven days, surpasses the high of 123.8 EH / s from the days before the last halving.
The miners are not yet surrendering
The Bitcoin hashrate reaches new highs, which makes the theory that the network was facing an impending “death spiral” irrelevant for the time being. The theory postulates that Bitcoin miners are likely to dispose of their machines or switch to other networks after the recent halving of rewards also reduced miners’ earnings. More specifically, the bitcoin’s hash rate dropped in the days after it was halved, while Bitcoin Cash and Bitcoin SV’s computing power rose to new highs.
Although the BTC price stagnated at $ 10,000 below the long-term resistance, an FUD on surrendering miners doesn’t seem to be an option – at least for now. With the introduction of new and more efficient mining devices such as Bitmains S19 and S19 Pro, miners contribute more computing power to the network. Bitcoin bulls will recognize the historical importance of current network strength. In the past, especially after the Halvings in 2012 and 2016, prices rose to local highs after each event in the second half of the year.