Bitcoin Hashrate Drops 8% After Market Decline

On-chain data reveals a significant drop in Bitcoin mining hashrate, which has decreased by more than 8% since reaching an all-time high at the end of last month. This decline coincides with recent bearish momentum in the cryptocurrency market, impacting miner profitability.

The Bitcoin mining hashrate, which measures the total computational power dedicated to mining on the Bitcoin network, surged to a new peak as BTC’s price rallied. However, following a downturn in Bitcoin’s value, the hashrate has been steadily declining. This trend indicates that some miners have disconnected from the network, possibly due to reduced profitability.

Despite Bitcoin recovering above the $62,000 level earlier, the hashrate did not rebound, suggesting miners were cautious about the price increase’s sustainability. The continued decline in hashrate is expected to result in a negative adjustment in Bitcoin’s mining difficulty, which will decrease by over 4% in the next scheduled update, making it easier for remaining miners to mine blocks.