The key misunderstanding with China's purported BTC hashrate dominance

According to CryptoQuant founder Ki Young Ju, Chinese mining pools control 55% of the network hashrate, while US mining pools control 40%.

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Bitcoin Network Fundamentals Could Sustain $265,000 Price, CryptoQuant CEO Explains

The CEO of analytics firm CryptoQuant has explained how the Bitcoin network fundamentals could support a market cap three times the current size. Bitcoin Hashrate/Market Cap Ratio Could Reveal Ceiling For Cycle In a new post on X, CryptoQuant founder and CEO Ki Young Ju has talked about what the network fundamentals could reveal about [...]

The post Bitcoin Network Fundamentals Could Sustain $265,000 Price, CryptoQuant CEO Explains appeared first on Crypto Breaking News.

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Bitcoin Hash Ribbons Form Capitulation Signal: What It Means

On-chain data shows the Bitcoin Hash Ribbons have recently gone through a crossover. Here’s what it could mean for the cryptocurrency. Bitcoin Hash Ribbons Suggest Miner Capitulation Is On As explained by CryptoQuant community manager Maartunn in a Quicktake post, miners are capitulating right now if the Hash Ribbons indicator is to be believed. This on-chain metric is generally used to determine whether miners are in distress. BTC runs on a proof-of-work (PoW) consensus mechanism where miners play the role of validators and compete against each other using computing power to get a chance to add the next block to the chain. This computing power, when measured across the network, can provide insight into the health of the miners as a whole. Due to this reason, the Hash Ribbons indicator makes use of this total Bitcoin “Hashrate” to judge the situation of the miners. Related Reading: Bitcoin Price Linked To Binance Vs Coinbase Battle, Quant Reveals Naturally, a rise in the Hashrate suggests the network is attracting miners right now, while a decline could imply low profitability is making some of these validators pull out from BTC. The Hash Ribbons indicator uses two moving averages (MA) of the Hashrate, 30-day and 60-day, to represent whether these behaviors are particularly intense or not at the moment. When the 30-day ribbon moves under the 60-day one, it suggests that miners are mass capitulating. On the other hand, the opposite cross suggests network is observing growth again. Now, what relevance do these trends have for Bitcoin? According to Charles Edwards, the creator of the Hash Ribbons, the miners have historically been quite resilient, and they only quit when things get especially bad for the cryptocurrency. As such, the market may be more likely to approach a bottom whenever these chain validators show capitulation. Below is a chart that shows how the miners’ behaviour has looked recently according to this indicator: As Maartunn has highlighted in the graph, the Bitcoin Hash Ribbons have seen a crossover recently. More specifically, the cross has involved the 30-day moving under the 60-day, implying that the miners are capitulating. Miner profits come down to three factors: BTC spot price, transaction fees, and electricity costs in the area that they are located in. Historically, the fees has been quite low in comparison to the block rewards, so miner financials have been dependent on the price (as the block rewards only have this variable attached to them) and electricity prices. Recently, the BTC price has been stuck in consolidation while the block rewards have been slashed in half in the latest Halving event. This has led to tightening revenues for these chain validators, so it’s not surprising to see that the miners with the least efficient machines have already started ditching the network in hordes. Related Reading: Newbie Bitcoin Whales Buying 200,000 BTC Per Week, Data Shows In the chart, past instances of miner capitulation are shown with the green lines. It’s visible that while miner capitulation has generally indeed occurred near profitable buying points into the asset, these bottoms haven’t immediately appeared after the crossovers have occurred. As the analyst notes, “It unfolds in the subsequent days and weeks after less efficient miners throw in the towel.” BTC Price Bitcoin has continued to move overall flat over the past week as its price is still trading around $62,700. Featured image from Vasilis Chatzopoulos on Unsplash.com, CryptoQuant.com, chart from TradingView.com

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Luxor and Bitnomial Roll out Hashrate Futures for US Market Ahead of Bitcoin Halving

Luxor Technology Corporation, a blockchain infrastructure service provider, has unveiled plans to introduce exchange-traded hashrate futures for institutional investors in the U.S. Through a collaboration with derivatives exchange Bitnomial, this new futures product is slated to be accessible on the trading platform by the end of this month. Luxor and Bitnomial’s Partnership Introduces Exchange-Traded Hashrate [...]

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Bitcoin Hashrate Surges as Mining Difficulty Reaches Record High with 1.7% Increase

Bitcoin’s mining difficulty has hit a record high of 48.71 T after a 1.72% increase at block height 786,240, even in the midst of a [...]

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Why The Bitcoin Mining Hashrate May Not Be Out Of The Woods Just Yet

The bitcoin mining hashrate took a sharp nosedive as a historical storm tore through multiple US states. This saw power grids consolidate power to be able to provide enough energy for residents to heat their homes and some mining operations had to wind down to free up more of the electrical. There has been an increase in the hashrate since then but the worst may not be over yet. Bitcoin Hashrate Takes A Beating Electricity grids across the United States came under immense pressure as the country recorded one of its coldest winters yet. Temperatures dropped drastically across various states and the electricity grid was stretched thin to provide enough energy to heat homes. As a result, a number of bitcoin miners decided to pause their operations to free up some energy and this affected the hashrate contributed by the country. Related Reading: Litecoin (LTC) Tops List Of Christmas Gainers, Is $100 Still Possible? By Christmas Day, the global hashrate had tanked almost 40%, dropping from its Dec. 24 peak of 276 exahashes per second (EH/s) to 175 EH/s. However, there was a 39% increase in hashrate on the same day which brought it back up to around 244 EH/s. BTC mining hashrate sees sharp decline on Christmas Day | Source: CoinWarz Since then, the hashrate has continued to wobble day to day and has now dropped back to the 212 EH/s level once more. This shows that while miners may have turned some of their machines back on, they may be shutting them down once more as the extremely cold weather persists. How Long Will This Last? Winter storm expert for Atmospheric Environmental Research Judah Cohen said that the Arctic blast currently being experienced in the United States should be short-lived and last about a week before temperatures begin to return to normal.  BTC price maintains momentum above $16,800 | Source: BTCUSD on TradingView.com However, this still leaves a couple of days before it is expected to completely subside. This is evidenced by the zig-zag recovery and dips in the bitcoin hashrate in the last two days following Dec. 25. Miners who have taken their operations offline to help stabilize the electricity grid will likely leave them offline for a while longer until authorities are convinced the weather has stabilized. An example of this was back in July when Riot Blockchain had to shut off its mining machines in Texas as the state faced a heat wave. Related Reading: Bearish Indicator: Bitcoin Volatility Hits All-Time Low Given this, the bitcoin mining hashrate is expected to trend low for another couple of days before bouncing back up. As for the miners, given that Riot had received $9.5 million in energy credits for turning off operations in July, it is possible that some sort of recompense will be offered to the miners. Featured image from Crypto News, chart from TradingView.com

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Bitcoin Hashrate Climbs To New High As Price Recovers Above $42,000

Bitcoin’s hash rate has continued its recent climb, riding the waves to new highs. The digital asset that has been suffering following the market crash seems to only be suffering in price as it has kept up the pace in other avenues. Coming out of the weekend, bitcoin has recorded a significant spike in its hash rate, leading to a new high of 248.11TH/s in a period of 24 hours. Bitcoin Hash Rate Touches New High Between February 11th and February 12th, the bitcoin hashrate recorded a new high. Miners who have been an integral part of the network since inception have continued to increase their support for it. Not only does mining profit the miners through block rewards and transaction fees, but they also help to secure the network with their activities which is why the recent surge is important. Relaed Reading | Argentinian Tax Authority to Seize Digital Wallets to Collect Tax Debts The hash rate has continued to trend around the same level for the better part of the month, fluctuating above and below 200 TH/s. On Saturday however, Blockchain.com reported that the hash rate had jumped 31% in the space of a day. It is one of the most significant growth recorded on the blockchain in recent times. In a matter of one year alone, the hashrate has grown 54%. This is coming up from the China crackdown on mining that saw the hash rate from the region crash to near zero. The digital asset has since recovered from this and surged towards new highs. With more power coming from the computing machines of miners, the hash rate has continued to climb. It is, in turn, helping to straighten the bitcoin network, an all-around win for the asset. Why Is Hash Rate Rising? The rise in the hash rate can be attributed to the number of miners that are coming into the space. Gone are the days when bitcoin mining was carried out on computers with graphics cards. Nowadays, there are entire farms dedicated to the activity of thousands of mining machines all connected to give the miners a better shot at mining a block. It has grown into a robust, billion-dollar industry. BTC settles above $42K | Source: BTCUSD on TradingView.com On the flip side of this, small-time miners are also ramping up their activities. Although their small hash rate makes it harder to make a profit, these small miners are finding refuge in mining pools where they pool their hash rate together, thereby increasing their chances of finding a block. Relaed Reading | Bitcoin Price Quick Look: Profit Taking Affects Current Market Movements This has worked out for a couple of miners who have been able to mine full blocks, receiving the full reward, despite their small hash rate. With this, more small miners are coming online but the real values are coming from the big players. It is expected that bitcoin’s hash rate will continue to rise as more players move into the mining industry. It has become a refuge for investors who want to invest in bitcoin-adjacent products. Currently, Russia has overtaken China and the United States to become the country with the highest hash rate. Featured image from CoinDesk, chart from TradingView.com

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Behind the Scenes of Kazakhstan's Political Crisis. Can Crypto Mining Survive There?

Kazakhstan has been in the crypto news a lot lately. On the surface, we know that it's a Central-Asian nation with cheap electricity that became the world's second-largest center for cryptocurrency mining after China’s crackdown on crypto. (Read More)

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Why China’s crackdown on mining is actually good for Bitcoin

China’s crackdown on Proof-of-Work mining last year tested the security of the Bitcoin network and showed that it was far more resilient than once thought.

The post Why China’s crackdown on mining is actually good for Bitcoin appeared first on CryptoSlate.

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Crypto Flipsider News – Bitcoin Hashrate Lag, Dorsey Launches Bitcoin Defense Fund, Powell Says Stablecoin Can Coexist with CBDC, MATIC and DOT Altcoin Rally, Moonbeam Launches on Polkadot, Coinbase to Shut Down for 4 Weeks

Learn more about the recent news happening in the crypto space.

Continue reading Crypto Flipsider News – Bitcoin Hashrate Lag, Dorsey Launches Bitcoin Defense Fund, Powell Says Stablecoin Can Coexist with CBDC, MATIC and DOT Altcoin Rally, Moonbeam Launches on Polkadot, Coinbase to Shut Down for 4 Weeks at DailyCoin.com.

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Crypto Flipsider News – Bitcoin Hashrate Sets ATH, YFI Jumps 11% in 24 Hours, More Billionaires are Turning to Crypto, Samsung to Add NFT Support, Bored Ape Reach New Highs, OKEx Processed $21 Trillion in 2021

Read about the newest events happening in the crypto space.

Continue reading Crypto Flipsider News – Bitcoin Hashrate Sets ATH, YFI Jumps 11% in 24 Hours, More Billionaires are Turning to Crypto, Samsung to Add NFT Support, Bored Ape Reach New Highs, OKEx Processed $21 Trillion in 2021 at DailyCoin.com.

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Bitcoin Hashrate Sets New Lifetime All-Time High in 2022

The Bitcoin hashrate (the network's processing power and security dedicated) suffered one of its biggest drops in 2021.

Continue reading Bitcoin Hashrate Sets New Lifetime All-Time High in 2022 at DailyCoin.com.

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Bitcoin hashrate recovers, reaches new ATH

At the peak of China’s crackdown on Bitcoin miners and trading activities within its jurisdiction last year, the Bitcoin mining hashrate declined to an all-time low of 58.4 million terahashes per second as many miners were taken out of business due to the strict anti-crypto policy.

The post Bitcoin hashrate recovers, reaches new ATH appeared first on CryptoSlate.

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Despite Red Bitcoin, On-Chain Signals Flip Green

Bitcoin on-chain signals have remained green despite the recent red week. Bitcoin’s price had taken a plunge towards $40K and had brought a lot of losses with it as billions of dollars in long positions were liquidated on December 4th in one of the sharpest declines of the year. Mostly this has brought down a number of metrics associated with the asset but on-chain signals remain resistant. On-chain data all ranging from miner revenues, transaction fees, hashrate, and daily transaction volumes have all shown positive trends for bitcoin. None of this has been affected by the price decline. Related Reading | Number Of Bitcoin Lightning Network Nodes Jumps 23% In Three Months Hashrate Continues Recovery Trend Bitcoin hashrate had taken a big heat with the China crackdown on mining that took place earlier in the year. The region had gone from providing about 70% of the mining power to almost zero in a matter of weeks, leaving the hashrate to suffer greatly. This has since been rectified as bitcoin miners have found new locations to resume their mining activities. BTC hashrate recovers post-market crash | Source: Arcane Research Since then, hashrate has been gradually picking back up and in the past week saw a significant increase. Bitcoin hashrate is up for the past seven days after the first difficulty reduction following ten difficulty adjustments. As the difficulty has dropped, so has the profitability of mining activities increased. Given this, more miners have gotten back in the game and set up their mining rigs once more, leading to a rise in hashrate. Arcane Research also reported that this increased hashrate has led to an increase in block production rate. As more miners come back on board, an average of 6.46 blocks have been created each hour in the past week. This represents a significant increase of 11% in the same time frame. BTC loses footing at $50,000 | Source: BTCUSD on TradingView.com Bitcoin Transaction Fees Rise Bitcoin transactions fees have remained low through the past weeks, but there was a recorded increase in fees in the past seven days. On average, bitcoin transaction fees grew by 33%. This growth however does not do much for miner revenue. Even though fees are up, they are still relatively meager and only bring in about 1.7% of the total miner revenues. Related Reading | Majority Of Bitcoin Investors Got In This Year, Says Grayscale Average transaction value also jumped in the past week. As investors rushed to sell their holdings during the crash, the average transaction volume climbed by 8.3%. This was mostly due to holders who hold larger volumes moving their BTC to exchanges to sell, not only increasing average transaction volume, but also transaction fees at the same time. Bitcoin daily miner revenues in the first week of December was $52,271,223 compared to daily revenues of $49,975,895 from the previous week. Fees per day, as well as transactions per day, were up at $891,499 and 276,680 respectively. Featured image from PSU Watch, charts from Arcane Research and TradingView.com

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Bitcoin (BTC) hashrate shifts to the US as states vie for miners’ attention

Months after China kicked out crypto miners citing environmental concerns of the industry, a report from Foundry USA has shown that miners emigrating to the United States are seeking renewable energy sources for their operations.

The post Bitcoin (BTC) hashrate shifts to the US as states vie for miners’ attention appeared first on CryptoSlate.

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Crypto Flipsider News – Grayscale Adds SOL and UNI, Bitcoin Hashrate Rises, BTC Bulls Ignore China Ban, Cardano Traders’ Issues in Japan, Mysterious Whale Buys 276B SHIB

Read Monday's breaking news in the daily digest!

Continue reading Crypto Flipsider News – Grayscale Adds SOL and UNI, Bitcoin Hashrate Rises, BTC Bulls Ignore China Ban, Cardano Traders’ Issues in Japan, Mysterious Whale Buys 276B SHIB at DailyCoin.com.

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Since China’s Mining Ban, Bitcoin Hashrate Has Recovered by 68% And Counting

Bitcoin is a perpetual motion machine. The Bitcoin hashrate is slowly climbing to pre-China-ban levels, and the service continued uninterrupted without a hiccup. Such is the power of well-placed incentives. Pantera Capital’s CEO Dan Morehead adds one more factor to the equation. “The bitcoin network has recovered 68% of the drop in hashrate that our difficulty model attributed to China’s ban—likely in places with cleaner energy.” The recovery is happening exactly as forecast. The #bitcoin network has recovered 68% of the drop in hashrate that our difficulty model attributed to China's ban—likely in places with cleaner energy. The transition to renewables is underway. Sep Letter: https://t.co/xLyaLpPQQN pic.twitter.com/UsK9ML3BU8 — Dan Morehead (@dan_pantera) September 9, 2021 In the company’s newsletter, Pantera fleshes out the argument: “Although difficult to know with certainty, it seems very likely that much of the reboot in mining power is occurring in places with cleaner energy than those utilized by Chinese miners.  The transition to renewables is well underway.” Regarding The Bitcoin Hashrate, Are ESG Concerns Even Important? Here at NewsBTC we’ve determined that China’s Bitcoin mining tended to go to provinces with abundant green energy. Bitcoin incentivizes that. The Bitcoin hashrate tends to go where the energy is cheap. We’ve also determined that the environment doesn’t seem to be the reason for China’s Bitcoin mining ban. “The fact that the electricity for crypto mining in Sichuan came from clean hydropower meant that many thought the province would be a safe haven for Bitcoin miners. As pressure on local governments to cut carbon emissions mounts, projects were successfully shuttered in some other provincial-level regions — such as Xinjiang and Inner Mongolia — where the mining was chiefly fueled by coal.”  The only thing we can know for sure about the Chinese government’s plan is this: the environment is not on their radar. They’re closing these mining operations for other reasons altogether.  It’s also important to remember that China’s Bitcoin hashrate dominance was already on decline before the mining ban.  “According to Arcane Research, CBECI numbers say that: China’s share of total Bitcoin mining power has declined from 75.5% in September 2019 to 46% in April 2021?—?before the restrictions on Chinese miners were even imposed. That figure is much lower than the older estimate of 65%. That’s a sharp decline. Why did China’s miners lose so much ground before the ban?” None of this invalidates Pantera Capital’s original thesis, though. “The transition to renewables is well underway,” that certainly seems to be the case. And the Bitcoin hashrate keeps climbing.  BTC price chart for 09/09/2021 on Timex | Source: BTC/USD on TradingView.com Do Bitcoin Halvins Imply Cuts In Energy Consumption? Another interesting idea present in the mentioned newsletter is this one: “Bitcoin has a built-in mechanism to reduce energy consumption over time.  The number of bitcoin issued in the every-ten-minutes block reward is cut in half every four years.  Ceteris paribus, the amount of electricity Bitcoin consumes will be cut by 50% every four years.  For comparison, the Paris Accord only requires 7% cuts every four years.” Of course, when related to fiat currencies, Bitcoin’s price fluctuates. So, the value of every Bitcoin stays the same, but the price might – and usually does – increase more than twofold. Even though the miner’s rewards are cut in half, their earnings might increase. That extra money could bring even more competition and a Bitcoin hashrate increase with it.  Taking that into account, Pantera poses: “Perhaps a more realistic scenario is if the price of bitcoin were to double every four years in parallel with the halvings – putting bitcoin at $320,000 /BTC in 2032 – electricity consumption would be no greater than it is today.” Enough About The Bitcoin Hashrate, What About The Price? Another point that the newsletter makes is this one.“This is China’s third ban of Bitcoin.  The reverse hex is still working – the price is up 57%.” Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course Is this a bullish signal? Bitcoin’s price has “only” increased by 57% since the Chinese mining ban sent the Bitcoin hashrate in death spiral for a few seconds. Bitcoin paid the price and resisted sabotage like a hero. We’re not sure if a “reverse hex” could be considered reliable information, but… maybe this IS a bullish signal? Featured Image by Diana Polekhina on Unsplash - Charts by TradingView and Pantera Capital

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Bitcoins Hashrate Hits Record 609 EH/s, Powering Through to New Peaks Amid Price Surge

Bitcoin’s computational power soared to unprecedented heights this week, climbing to 609 exahash per second (EH/s) on Thursday, as per the seven-day simple moving average (SMA). Over the last year, figures reveal a staggering increase in Bitcoin’s hashrate, surging by 332 quintillion hashes per second. Bitcoin’s Computational Power Skyrockets On Feb. 8, 2024, the hashrate [...]

The post Bitcoins Hashrate Hits Record 609 EH/s, Powering Through to New Peaks Amid Price Surge appeared first on Crypto Breaking News.

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New Study Highlights Bitmain’s S19 Mining Rigs Dominate Bitcoin Network’s Hashrate 

Coin Metrics researchers published a groundbreaking study on June 13, unveiling an innovative nonce analysis methodology for bitcoin mining. This research enables experts to dissect and identify the specific mining rigs responsible for contributing hashrate to the network, while also evaluating the energy consumption and effectiveness of these machines. Intriguingly, the data reveals that Bitmain [...]

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Current Bitcoin Hashrate Can Sustain $4.9 Trillion Cap, CryptoQuant CEO Reveals

The founder and CEO of the on-chain analytics firm CryptoQuant has explained where the peak Bitcoin market cap lies based on the current hashrate. Bitcoin Ceiling Could Lie At This Level Based On Network Hashrate In a new post on X, CryptoQuant founder and CEO Ki Young Ju discussed a BTC pricing model that puts upper and lower bounds on the cryptocurrency’s price using the trend in the mining hashrate. The mining hashrate here refers to a metric that keeps track of the total computing power the miners have currently connected to the Bitcoin blockchain. Miners use their computing power to compete against each other to become the first to solve certain mathematical puzzles and receive the block reward as compensation. Related Reading: Chainlink May Reach New ATH If This Barrier Breaks, Analyst Says Given that BTC can’t exist without the miners or, at least, not be as secure without a decentralized network, some believe the intrinsic value of the cryptocurrency can be measured using the hashrate. After all, the Bitcoin miners have to pay constant electricity bills to host the hashrate, and they would only be willing to run as many farms as would be worth it. The chart below shows that the BTC mining hashrate has been rising recently and setting new all-time highs (ATHs). The reason behind this uptrend is the rally that the asset has been observing; price is the main variable for the revenue of these chain validators, as the block subsidy they receive in BTC naturally fluctuates with it. Speaking of the block subsidy, a feature of the BTC network is that its value is permanently slashed in half about every four years in an event called the Halving. A consequence of the Halving is that miner revenue in BTC is constantly heading down. The pricing model shared by Young Ju considers this fact by adjusting the mining hashrate. This indicator then takes the market cap’s ratio with this adjusted hashrate and determines the highest and lowest values for this ratio in the asset’s history. Here is the chart for the model that shows what values the asset’s market cap would need to attain for the ratio to become equal to either of these extremes: As displayed in the above graph, the maximum potential Bitcoin market cap based on the current value of the network’s hashrate is almost $5 trillion. The asset’s market cap is a little under $1.9 trillion, which means it’s just 38% of this upper limit. Something to note, though, is that the 2021 bull run top occurred under the top line of the model. So, it’s possible that the top for the current cycle may not touch the line, either. That said, the market cap did come closer to the peak ratio back then than it has so far in this cycle, which could at least suggest there is room left for BTC in the rally. Related Reading: Bitcoin Crashes Under $93,000: Whats Behind It? A peculiar feature in the chart’s lines is that they have some abrupt drawdowns in 2016, 2020, and 2024. These naturally correspond to the Halving events that occurred in those years and reflect their economic effect on Bitcoin mining. BTC Price At the time of writing, Bitcoin is trading at around $94,400, up more than 2% over the last seven days. Featured image from Dall-E, CryptoQuant.com, Blockchain.com chart from TradingView.com

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