An analyst from on-chain analytics firm CryptoQuant recently stated that the stagnation in Bitcoin’s hashrate may be temporary. The analyst, who goes by MAC.D on Twitter, suggested that the hashrate had a direct impact on Bitcoin miners and their BTC holdings.
CryptoQuant took to Twitter earlier today to share MAC.D’s analysis of Bitcoin’s hashrate:
#Bitcoin hashrate stagnation, but may be a temporary phenomenon.
— CryptoQuant.com (@cryptoquant_com) July 25, 2023
"A higher hashrate means that the Bitcoin network is more secure, which in turn means that the intrinsic value of $BTC has increased."
Quicktake Post by @MAC_D46035
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According to MAC.D’s analysis, Bitcoin’s hashrate stagnated after it reached an all-time high of 448 million earlier this month. This was followed by a stall in the flagship cryptocurrency’s price rally which raised concerns about a potential correction in its price. This led to BTC miners cashing out in anticipation of a price drop.
Speaking on BTC’s hashrate and its implications, the CryptoQuant analyst stated:
Ultimately, the increase in Bitcoin hashrate means that Bitcoin becomes a more difficult currency to supply. This means that BTC has a limited supply and a high production cost compared to fiat currencies as it is difficult to increase the supply arbitrarily.
For Bitcoin miners, increased and sustained BTC hashrate was indicative of immense mining competition. When BTC failed to break past the resistance zone at $31,000 for nearly three months, miners stopped mining and sold their mined BTC to acquire better mining equipment. This also indicated the selling pressure induced by hashrate stagnation on BTC miners.
MAC.D stated that the selling pressure on Bitcoin matters was not a matter of concern, given that when such phenomena occurred in the past it led to BTC price adjustments which eventually led to increased buying pressure. The analyst asserted that a higher hashrate was indicative of a more secure BTC network, which meant that the intrinsic value of Bitcoin had increased. Data from CryptoQuant showed that at the time of writing, Bitcoin’s hashrate was hovering around 401 million terahashes per second (TH/s).
