Bitcoin (BTC) is setting new records for network activity as volatility pushes the price of BTC to new five-month highs.
Data from resources including MiningPoolStats confirms that the Bitcoin hash rate reached a new all-time high on January 26th.
Hash rate exceeds 300 EH/s threshold
In another example of Bitcoin quickly recovering from the pits after the FTX-related issues, the hash power of the network is now greater than ever.
According to the raw data from MiningPoolStats, the hash rate, which is an expression of the processing power allocated by the miners of the network, is currently 321 exahash per second (EH/s).
Bitcoin hashrate raw data graph (screenshot). Source: MiningPoolStats
Even though this is just an estimate and cannot be accurately measured, the latest reading is quite a feat as the 300 EH/s level has never been crossed before.
Mining company Braiins also confirmed the numbers in a live stream.
Other trackers from BTC.com and Blockchain.com have slightly lower estimates, both at around 275 EH/s per day. The latter shows that the hash rate hit an all-time high of 276.8 EH/s on January 20th.
Bitcoin hashrate chart (screenshot). Source: Blockchain
“Your wealth is safer than ever!” a popular BTC Archive commentator tweeted part of a response to data suggesting an improvement in sentiment in the bitcoin space.
Hash rate is a key component of Bitcoin security, and significant drawdowns lead to increased network difficulty, which attracts more miners to participate.
Network difficulty should also reach levels not seen earlier this week, indicating fierce competition in the mining sector.
According to BTC.com, the next automatic adjustment will increase difficulty by about 2.75% to 38.62 trillion.
The previous adjustment resulted in a 10.26% increase, the biggest increase for Bitcoin since October 2022 and only the second double-digit increase since mid-2021.
An overview of the basics of the Bitcoin network (screenshot). Source: BTC.com
Miners got the ability to balance the ledgers
Analyzing the climate, CoinLupin, a member of the network data platform CryptoQuant, warned that miners are still selling their BTC reserves, possibly to shore up capital in the event of a market reversal.
Related: Bitcoin to face ‘significant danger’ from the Fed in 2023 – Lyn Alden
“Now they have improved profitability for the first time in a long time and mining costs are lower than Bitcoin prices. There could usually be more active mining and storage, but now they seem to see this as an opportunity to get cash,” he wrote on his blog, describing reserves as “dwindling at a rapid” pace.
“One day, a price adjustment could happen in a section where they get enough cash and start collecting bitcoins again. They are constantly reducing their bitcoin holdings during growth.”
The CryptoQuant Miner Position Index, which measures the outflow of BTC to exchanges from miners’ wallets relative to their yearly moving average, has recorded multiple withdrawal spikes since January 14.
Bitcoin miner position index chart. Source: CryptoQuant
Miner reserves of 1,837,138 BTC are currently at their lowest level since December 2021.
Bitcoin miner reserves chart. Source: CryptoQuant
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