Bitcoin Hashrate Hits All-Time High

Bitcoin’s hashrate has surged to an all-time peak of 833 EH/s in a seven-day moving average, a rise reflecting a 9% increment from 767 EH/s recently.

Important Observations:

• Bitcoin transaction fees now stand at several-year lows.

Key Details:

• According to data from Glassnode, this hashrate signifies robust network security by indicating heightened computational effort in securing the Bitcoin network through mining activities.
• A report by Miner Mag highlighted a drop in pre-orders for mining hardware, arising after the surge prior to the April 2024 halving, a periodic event in Bitcoin’s calendar that halves the block reward.

While many mining firms prepared for extensive operations ahead of this event, analysts are forecasting a potential tapering off in hashrate growth.

The rising hashrate accordingly comes amidst sustained mining profitability in recent months, despite a backdrop of historically low transaction fees affecting miners’ revenues.

Mempool Dynamics:

In Bitcoin’s mempool, transactions remain cheap, costing around 5 sat/vB—and this has driven miner earnings down further.

A diversified revenue model historically anticipated transaction fees to replace the block subsidy, however current market dynamics stand to challenge this approach.

The next difficulty adjustment slated in four days, is expected to increase by over 6%, promising additional pressures on miners.