Bitcoin Hashrate Reaches Record High Demonstrating Strengthened Power of Bitcoin Network

CoinWorld reports:
According to Bitcoin on-chain data website, the 7-day moving average of Bitcoin mining has surpassed the 700 EH/s mark, reaching a new all-time high. Since the Bitcoin halving event in April, the hash rate has increased by over 13%. The hash rate also highlights a 6% increase in the past 7 days.
The price of Bitcoin hash rate has reached a two-month high, exceeding $50 per second, and at the time of writing this article, it has been corrected to slightly above $47 per second. The surge is attributed to the increase in Bitcoin transaction fees and coin prices.
Due to the surge in the current Bitcoin hash rate, the cryptocurrency market expects a difficulty adjustment in Bitcoin mining. The Bitcoin difficulty adjusts every 2016 blocks, with the next adjustment scheduled for October 23rd. The expected adjustment is projected to be over 4%.
However, the price of the leading cryptocurrency has fallen by approximately 1.1% today, dropping below $67,000 at the time of writing this article. On the other hand, data from BitInfoCharts shows a steady increase in Bitcoin hash rate since 2021.
Publicly traded US miners contribute to the growth of Bitcoin hash rate
New: United States.
According to JPMorgan, miners now contribute 29% of the network’s hash rate.
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– Simply Bitcoin (@SimplyBitcoinTV)
October 16, 2024
JPMorgan’s recent report shows that publicly traded Bitcoin miners in the United States contribute 28.9% to the current hash rate of the Bitcoin network. In the first half of this month, the stock prices of US mining companies have also surged.
JPMorgan’s research also indicates a significant increase in the percentage of Bitcoin mining companies based in the United States, highlighting the country’s dominant position in Bitcoin hash rate. Previously, China had the largest dominance in Bitcoin mining.
This year, US Bitcoin mining companies continue to show encouraging data. In September, data shows that US Bitcoin mining pools accounted for approximately 40% of the Bitcoin network’s mining power. However, Chinese companies still hold as much as 55% of Bitcoin mining power. The decline in China’s dominance occurred after the country banned all cryptocurrency exchanges and companies.
Interest in Bitcoin mining stocks on Wall Street increases
Ahead of the November US presidential election, institutional investors have shown growing interest in Bitcoin mining stocks. Some analysts speculate that the newfound interest is related to the perception that holding Bitcoin mining stocks is safer than holding Bitcoin.
Other information shows that institutional investors are betting on the energy development of Bitcoin mining companies. A new policy requires Bitcoin mining companies to generate electricity.
Morgan Stanley’s Global Research Director encourages Chief Information Officers of Wall Street companies to consider investing in Bitcoin mining. Matthew Sigel, Director of Digital Asset Research at VanEck, confirmed on October 14th that details of the mining companies’ new energy policy were further revealed in an X post. Sigel also revealed that Bitcoin mining companies are increasingly interested in developing technologies, including machine learning and artificial intelligence.
X user Dark Horseman predicts a bullish outlook for BTC due to the increased interest. The user stated on Twitter that several institutional investors, including Fidelity, Metaplanet, and Samara Asset Group, are stocking up on top cryptocurrencies.