- On-chain data has revealed that ahead of the April halving, Bitcoin mining hashrate has staged a comeback to reach an all-time high.
- This suggests that new miners are joining the network and old ones are expanding their operations; this could imply renewed interest in BTC.
The latest on-chain data shows that Bitcoin mining hashrate has recorded a sudden surge ahead of the highly anticipated April halving. Data provided by Blockchain.com reveals that Bitcoin’s 7-day average mining hashrate has jumped to a new ATH. The hashrate has reached a record of 563,483,592.12. This precedes an equally notable drop, with the hashrate levels reaching an over-two-month low.
The sudden increase further coincides with a difficult adjustment, a feature that dictates how hard miners have to work to produce a block on the network. The higher the metric, the more resources miners have to commit to producing the blocks. Once a block is produced, a reward is awarded to the miner or miners involved. Notably, this reward will be slashed in the highly anticipated April halving.
As highlighted in a Crypto News Flash YouTube video, the adjustment has made it easier for miners to get rewards, possibly leading to an increase in hashrate as little mining power is required.
In the upcoming halving, the block reward will be slashed from 6.25 to 3.125 BTC per block produced. This is one of several features introduced on the network as a means to control the inflation of the digital asset.
Historically, this has been one of the most bullish events in Bitcoin’s existence. After a few months of its successive completion, BTC undergoes a true bull market that ends with the crypto king reaching an all-time high. With the same trend expected to persist, experts foresee BTC surpassing its current ATH of $69,000 to reach $100,000 by the end of the year.
At the time of this writing, BTC is trading at $42,700 after a 1.6% drop in the last 24 hours. On the weekly chart, BTC is still up by nearly 7% after staging a recovery from its monthly low of $38,000. The recent performance follows a failed breakout above $43,000, which now casts a bearish shadow over BTC in the short term.
In anticipation of a price rally post-halving, miners are expected to hold on to their newly created coins to sell them at a higher price when prices eventually rally. Depending on the numbers held, this could affect the circulating supply and potentially lead to a positive supply shock that fuels BTC prices.
Similar to previous halvings, research suggests that the rewards miners receive might not cover operational costs post-halving. This potentially means that some miners might operate at a loss for some time. However, this always self-corrects once prices rally.
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