- Apart from hashrate, Bitcoin miners’ revenue also rose in the recent past.
- BTC was up by more than 4% over the last week, along with an increase in volume.
Bitcoin’s [BTC] mining industry registered a massive movement that brought it into the limelight once again. Notably, the blockchain’s hashrate saw the kind of spike never seen before in a single day.
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Typically, a hike in hashrate means that more miners are entering the network. However, will this influx be enough for the king of cryptos to kickstart its next bull rally?
A closer look at Bitcoin’s mining sector
James V. Straten, a popular researcher and data analyst, posted a tweet on 18 September that pointed out an interesting development.
The best way to observe the #Bitcoin hash rate is at least a 7/14 SMA.
But we saw a god candle on Friday with a hash rate, that took it to over 500eh/s, the prior day, it was at 400 eh/s.
Single biggest one-day hash rate, the network has ever seen.
As a result, the… pic.twitter.com/71C0tgKmK1
— James V. Straten (@jimmyvs24) September 18, 2023
As per the tweet, a god candle last Friday pushed BTC’s hashrate to over 500 Eh/s from 400 Eh/s in just a single day. This was a tremendous jump, reflecting an inflow of new miners into the industry.
Even though BTC’s hashrate had declined slightly, it was still relatively high at press time, standing at over 388 Eh/s. However, it was intriguing to note that, as per Coinwarz, despite the substantial surge in the blockchain’s hashrate, its mining difficulty chart remained flat at 54.15 T.
Why is miners’ interest in Bitcoin growing?
As BTC’s mining sector’s strength rises, it’s also crucial to examine why miners are entering the industry. Though there might be multiple variables at play, one likely factor is that they are expecting higher profit margins.
In fact, a look at Glassnode’s data revealed that this might actually be the case. Notably, over the last few months, miners’ revenue took a sideways path, which could somewhat be attributed to the bearish market.
However, the trend changed in the last few days. As per the latest data, BTC’s miners’ revenue started to gain upward momentum since the beginning of this month and registered a promising spike on 15 September.
Interestingly, this happened on the same day when the blockchain’s hashrate surged.
Miners have faith in BTC
A look at Bitcoin’s mining metrics suggested that the miners’ faith in BTC was also showing positive signs. However, the metrics were not evident right off the bat.
For instance, Glassnode’s data revealed that BTC’s miner net position change turned red. This indicated that miners were selling their holdings. However, upon closer inspection, a different side of the story was revealed.
As per CryptoQuant, BTC’s Miners’ Position Index (MPI) and Puell multiple remained in a neutral state, meaning that selling pressure on BTC from miners was moderate at press time.
Moreover, after a sharp dip on 2 September, the miners’ balance ascended once again. This suggested that they were once again holding their assets, reflecting miners’ confidence in BTC’s bull rally.
Will miners’ confidence be enough for Bitcoin?
Miners’ trust in BTC might have already started to show its effect in reality, as BTC’s price chart turned green. In fact, after quite some time, the king of cryptos was able to cross $26,000 and even touched $27,000 for a short while.
As per CoinMarketCap, Bitcoin was up by more than 4% in the last seven days. At the time of writing, it was trading at $26,826.77 with a market capitalization of over $522 billion. The good news was that BTC’s 24-hour trading volume also surged by nearly 100% in the last 24 hours.
Read Bitcoin’s [BTC] Price Prediction 2023-24
In fact, a check of BTC’s daily chart gave more reasons to rejoice, as most market indicators were bullish. For example, the MACD’s data clearly showed that the buyers were leading the market. Bitcoin’s Relative Strength Index (RSI) was resting above the neutral mark of 50.
Additionally, BTC’s Chaikin Money Flow (CMF) also registered an uptick. Considering all these market indicators coupled with miners’ confidence, a continued northbound price movement seemed likely in the coming days.