Bitcoin’s hashprice has surged to a two-month high, reaching over $50 for the first time in mid-August. This increase is a positive sign for miners who have been struggling due to harsh market conditions. Last year, the hashprice was consistently above $60 per petahash per day, and to reach that level again, Bitcoin would need to hit $83,000 with the current network difficulty.
The rise in hashprice is closely tied to Bitcoin’s recent price rally, with the cryptocurrency surpassing $68,000 on October 16. This has led to speculation that Bitcoin may be on track to fulfill its “Uptober” narrative after a period of slow trading. Increased network fees, driven by activity on the Runes protocol, have also contributed to the hashprice recovery. Runes transactions accounted for over 10% of all Bitcoin network transactions in the past week, indicating a rise in network engagement.
Furthermore, a 5% drop in the network’s hashrate, from 700 EH/s to 665 EH/s, may have played a role in the hashprice increase. While the exact cause is uncertain, disruptions in mining operations in the US due to recent hurricanes and power grid issues could be a factor.
The 35% rebound in hashprice is particularly good news for US miners, who now control a record 28.9% of the global network hashrate. This marks a 70% increase in their collective power year-to-date, outpacing the overall network’s 33% growth. JPMorgan notes that mining stocks saw a rally in early October as Bitcoin prices rose, with companies involved in high-performance computing attracting interest from hyperscalers for strategic partnerships.
Overall, the increase in hashprice is a positive development for the mining industry, providing much-needed relief to miners and potentially signaling a bullish trend for Bitcoin in the coming weeks. It will be interesting to see how these changes impact the broader cryptocurrency market and if US miners can continue to gain ground in the global mining landscape.