Bitcoin Hashprice Decline Mirrors March 2020 BTC Price Levels

August 31, 2024 12:01 AM AEST | By Team Kalkine Media

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Bitcoin Hashprice Decline Mirrors March 2020 BTC Price Levels — Image source: shutterstock

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Bitcoin's current hashprice metrics, when analyzed in relation to BTC price action, reflect conditions reminiscent of the period leading up to the 2020 breakout to new all-time highs. According to a Quicktake blog post by CryptoQuant dated August 30, Bitcoin appears to be presenting a new "buy opportunity" despite ongoing profitability challenges for miners.

Hashprice, a key indicator measuring miner costs on a per terahash basis, is currently at notably low levels. Historical data indicates that such low hashprices have previously coincided with {Bitcoin} (BTC) prices nearing their bottom before significant upward movements. The current hashprice conditions echo those observed after the 2020 COVID-19 market crash, which preceded Bitcoin's halving event and subsequent price surge.

Despite the profitability squeeze, Bitcoin miners have recently shown a return to accumulation. Data indicates that miner wallets experienced a slowdown in outflows through July, with their BTC reserve balance now at 1,815,832 BTC. This suggests a cautious but positive shift in miner behavior.

Additionally, Bitcoin mining difficulty increased by 3% this week, approaching all-time highs of 90.66 trillion. This adjustment reflects ongoing network dynamics and miner responses to fluctuating conditions. CryptoQuant CEO Ki Young Ju noted that the overall mining sector in the United States appears to be stabilizing, with "miner capitulation nearly over" and the hashrate nearing all-time highs. The Hash Ribbons indicator supports this view, indicating a period of resilience and ecovery following the halving events.

In summary, Bitcoin's hashprice metrics and miner behavior suggest that the current market conditions could be setting the stage for a upward shift, similar to the patterns observed prior to past price surges.

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