he Bitcoin Hash Rate has reached an all time high recently, Showcasing the robust network and security. This is highlighted by the fact that the 14 day moving average hash rate has risen to 666. 4 EH/s, which is less than 1% below the highest level. This indicates that new mining machines are being used to mine Bitcoin.
Miners Adapt to Changing Revenue Streams
However it is important to note that miner’s revenue has decreased substantially since Bitcoin’s ATH earlier in the year, as the price of Bitcoin corrected massively, reducing the reward for miners. Hence why miners have changed their strategies and are shifting from net distribution to holding some of mined supply in treasury reserves.
Trader Activity Wanes
Another issue that miners were facing was a reduction in bitcoin traders, meaning that less transactions were occurring on the BTC Blockchain network and in turn reducing the fees and reward allocated to miners. The reason for this is because Bitcoin users have shifted from traders to holders. Data shows that total on chain transactions on the network have dropped substantially over the past few months.
Market Indicators and Future Outlook
Analysts from Glassnode, have concluded that Bitcoin is Currently in a low risk environment, mainly due to macroeconomics uncertainty, and this could lead to high volatility conditions.
A Tale of Two Trends
It is quite interesting to compare the current miners and traders, and how their behaviors affect the Bitcoin market as well as the miners revenue and hash rate. While miners are still quite active and flexible, traders are starting to be more careful thus creating preconditions for market shifts in the near future.
