Bitcoin Hashrate Sets New ATH Despite Bearish Price: Miners Betting On A Rally?

Source Bitcoinist

On-chain data shows that the Bitcoin Mining Hashrate has just set a new all-time high (ATH) despite the asset’s bearish trajectory.

7-Day Average Bitcoin Mining Hashrate Has Shot Up Recently

The “Mining Hashrate” refers to a metric that keeps track of the total amount of computing power that the miners as a whole have connected to the Bitcoin blockchain. The miners need this computing power because the BTC network uses a Proof-of-Work (PoW) based consensus mechanism, where validators compete against each other to solve mathematical problems to add the next block to the chain.

As such, the Hashrate can reflect how the miners are looking at the cryptocurrency. A rise in the metric could suggest these validators are finding the asset attractive right now, so new miners are coming and/or old ones are expanding their facilities.

Similarly, a decline implies some of the miners have decided to disconnect from the network, potentially because they no longer believe BTC mining is profitable.

Now, here is a chart that shows the trend in the 7-day average Bitcoin Mining Hashrate over the past year:

Bitcoin Mining Hashrate

As displayed in the above graph, the 7-day average Bitcoin Mining Hashrate had shot up near the end of July to set what was then a new record for the metric. Following this high, however, the indicator had seen a rapid decline and it wasn’t until the second half of August that the metric made some recovery.

This recovery had maintained for a while, but the indicator ended the month with a retrace back to the earlier lows. As for why these trends played out the way they did, the corresponding BTC price action could hold the answer.

The Bitcoin miners make the primary part of their income through the block subsidy that they receive upon solving blocks on the network. A feature of the chain is that these rewards stay fixed in BTC value and are also more or less given out at a fixed time-interval.

What this means is that there is only really one variable associated with them: the USD value of the cryptocurrency. Thus, whenever the price rises, so does the revenue of the miners. The late July high in the Hashrate had occurred as BTC had rallied towards the $70,000 level, while the decline that succeeded this peak had taken place as the asset itself had seen a sharp drawdown.

Interestingly, since September kicked off, the 7-day average Bitcoin Mining Hashrate has been rising despite the fact that the price has been constantly going down instead.

This suggests that the miners have decided to be bold and have expanded their facilities in anticipation of a future rally. The Hashrate had also shown a similar trend earlier in the year, which had led to the rally towards the ATH price for BTC.

It now remains to be seen whether this expansion of the Hashrate to a new ATH would work out for the Bitcoin miners this time as well or not.

BTC Price

At the time of writing, Bitcoin is trading at around $55,100, down almost 6% over the last seven days.

Bitcoin Price Chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
Dogecoin Price Eyes 58% Move Upward If This Major Level Is BrokenThe Dogecoin price is once again in the spotlight, stirring up bullish excitement as a crypto analyst predicts a potential 58% upside move in the near term.
Author  Bitcoinist
Yesterday 02: 40
The Dogecoin price is once again in the spotlight, stirring up bullish excitement as a crypto analyst predicts a potential 58% upside move in the near term.
placeholder
Gold price recovers further from one-month low amid a weaker USDGold price (XAU/USD) is building on the previous day's goodish recovery from the $3,248-3,247 region or a one-month low and gaining positive traction for the second successive day on Tuesday.
Author  FXStreet
Yesterday 05: 46
Gold price (XAU/USD) is building on the previous day's goodish recovery from the $3,248-3,247 region or a one-month low and gaining positive traction for the second successive day on Tuesday.
placeholder
Eurozone June Inflation Preview: EUR/USD Expected to Rise Initially, Then DeclineOn 1 July 2025, the Eurozone will release its June inflation data.
Author  TradingKey
23 hours ago
On 1 July 2025, the Eurozone will release its June inflation data.
placeholder
Bitcoin Price Forecast: BTC slips below $107,000 even as exchange reserves hit 6-year low Bitcoin (BTC) slips below $107,000 at the time of writing on Tuesday, continuing a mild pullback from the previous day.
Author  FXStreet
21 hours ago
Bitcoin (BTC) slips below $107,000 at the time of writing on Tuesday, continuing a mild pullback from the previous day.
goTop
quote