The price of Bitcoin (BTC) has experienced a significant decline this week, plummeting by 9.03% to fall below the $62,000 mark, according to data from CoinMarketCap. This downturn leaves the asset’s net gain over the past month at a modest 0.20%, reflecting a market that has seen balanced influence from both buyers and sellers. As Bitcoin searches for a stable support level, blockchain analytics platform CryptoQuant has surfaced with some encouraging developments in the mining sector.
Blockchain analytics firm CryptoQuant reported on Friday that Bitcoin’s mining hashrate has seen an upswing, reaching 604 exahashes per second (EH/S) last week. This represents a 6% increase from the lows recorded on July 9, though it is still 2% shy of the network’s all-time high hashrate value.
According to CryptoQuant, Bitcoin miners are currently enjoying improved pay conditions compared to April, with daily mining revenues having surged by over 50% since early July. This reduced the necessity for miners to liquidate their assets; daily Bitcoin miner outflows were between 5,000 and 10,000 BTC in July, a significant decrease from the 10,000 to 20,000 BTC outflows seen in early March when Bitcoin was trading at around $70,000.
In general, the hashrate measures the total computational power used to mine and process transactions on the Bitcoin network. An increasing hashrate is generally seen as a sign of miners’ confidence in the profitability of BTC, suggesting that they believe in mining the token due to current or anticipated future prices.
Despite the recent dip in Bitcoin’s price, miners’ ability to maintain high performance levels could be crucial in triggering a market rebound. Conversely, a sell-off by miners could push Bitcoin’s price down further. It is more likely, however, that we may see a decline in hashrate if miners find it increasingly difficult to remain profitable due to lower Bitcoin prices and network fees.
As of the latest data, Bitcoin is trading at $61,387, having lost 5.05% in the last 24 hours. The asset’s daily trading volume has increased slightly by 5.35% to $42.9 billion.
Historical data suggest that Bitcoin might be hovering in a support zone currently, but a further drop below this level could lead prices to fall as low as $55,000, a level seen in early July. Conversely, if the market manages to stabilize at this point, a return to the $70,000 price zone is within the realm of possibility.
