It seems like Bitcoin is at a bit of a crossroads, with prices pulling back but mining performance hitting record highs. After challenging the $70,000 level earlier this week, Bitcoin (BTC-USD) dropped below $67,000 during U.S. morning trading, underperforming other key cryptos. This could leave some crypto enthusiasts questioning whether the recent rally is already losing steam.
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But while prices took a hit, Bitcoin’s mining power, or hashrate, surged to an all-time high. According to Glassnode, the network’s seven-day moving average hashrate cracked 703 exahashes per second (EH/s), a historic milestone for the network. So, what’s really going on here?
Bitcoin Price Struggles After Failed Breakout
Bitcoin bulls were on edge this week after a failed attempt to push the price above $70,000. As of Monday, Bitcoin’s price had slid by 2.3% over the past 24 hours, according to CoinDesk. Ethereum (ETH-USD) wasn’t far behind with a 1% drop, and other altcoins like Litecoin (LTC-USD) and Polkadot (DOT-USD) saw even steeper declines. Despite the dip, one token stood out—Solana (SOL-USD). Solana was the lone outperformer with a modest 2.4% gain, though it was still down from its weekend highs of $170.
So, why the sudden pullback? One factor could be the sharp rise in interest rates across Western economies. According to CoinDesk, the U.S. 10-year Treasury yield jumped 10 basis points, which can often put pressure on riskier assets like Bitcoin. Crypto trading firm Wincent weighed in, noting that upcoming U.S. earnings reports could also be making investors skittish. “It’s a risk-off week,” said a Wincent spokesperson, who predicted a brief pullback followed by a potential rally closer to the U.S. elections.
Bitcoin Mining Power Reaches New Heights
On the mining front, Bitcoin continues to thrive, even if its price doesn’t reflect it. Bitcoin’s hashrate recently hit 703 EH/s, according to Glassnode—a 6% increase over the past week and a 13% increase since the halving in April. This surge in hashrate means more computational power is being used to secure the network and process transactions, a sign of growing miner activity.
What’s driving this boost? It turns out publicly traded miners are playing a big role. According to mining analyst Sebastian Ski, 12 of the top public miners now contribute 28.9% of the total hashrate, up almost 10% from last year. Companies like CleanSpark (CLSK) and Riot Platforms (RIOT) are among the biggest gainers, as they continue to scale up their operations.
BTC’s Hashprice Jumps as Mining Profitability Grows
Interestingly, Bitcoin’s hashprice—the measure of mining profitability—has also surged, hitting $50 per petahash per second (PH/s) for the first time since August. This jump in profitability is being attributed to a rise in transaction fees, largely driven by the on-chain minting of the Runes protocol. According to Glassnode data, over 50% of all transaction fees on October 17 were linked to Runes.
But with all this mining activity comes increased difficulty. Bitcoin’s difficulty adjustment, which occurs roughly every two weeks, is set to increase by 4% on October 23. As CoinDesk noted, this ensures that blocks are mined consistently every 10 minutes, keeping the network stable.
Key Takeaway
While Bitcoin’s price may be stumbling, the network’s mining sector is stronger than ever. The record-high hashrate and rising hashprice signal that miners are in it for the long haul, even as weaker players get squeezed out.
At the time of writing, BTC is sitting at $66,835.31.
