Bitcoin mining has never been more competitive even as BTC loses 13% in August

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Knowledge from on-chain monitoring useful resource confirms that on Aug. 31, Bitcoin’s community issue hit new all-time highs.

Bitcoin seals largest issue jum since begin of 2022

Regardless of the latest BTC price drawdowns, Bitcoin’s community fundamentals are telling an optimistic tale as August involves a detailed.

Each issue and hash fee are climbing, reflecting conviction amongst miners over long-term profitability of their community participation. It additionally means that the mining sector is absorbing decrease earnings versus prices within the brief time period.

Problem, which added 9.26% at its Aug. 31 automated readjustment, now stands at its highest ever. Competitors amongst miners is as wholesome as ever.

For comparability, the final time that issue elevated extra directly was in January (9.32%), and earlier than that, in August 2021 (13.24%).

Based on, hash fee now stands at a median 221 exahashes per second (EH/s), a hair off its highest-ever recorded common studying of 223 EH/s from simply earlier than Could’s Terra LUNA implosion.

Bitcoin (BTC) fundamentals have delivered a “welcome uptick” which analysis says takes the sting off a traditional bear market.

“Personally, I believe as extra hashrate comes from the US, we’ll see a brand new annual seasonal pattern like we used to see in China. ie sizzling months decrease hashrate/serving to to stabilize grid, cool months increased hashrate,” macro analyst Jason Deane wrote in a part of a Twitter response to the problem readjustment.

Bitcoin community fundamentals overview (screenshot). Supply:

Bitcoin “barely hanging on”

The numbers present a welcome counterpoint to distressed spot markets and gloomy projections for the remainder of 2022.

Associated: BTC price top warnings emerge as 10K BTC leaves wallet after 9 years

With BTC/USD set to finish August down virtually 13%, on-chain analytics agency Glassnode stated {that a} rebound in fundamentals can be a useful antidote to an in any other case bitter surroundings.

“It stays believable that Bitcoin is in a backside formation vary and can be traditionally just like all previous bear markets,” it concluded within the newest version of its common e-newsletter, “The Week On-Chain,” launched on Aug. 30 and titled “Bitcoin Barely Hanging On.”

“Nevertheless, Bitcoin costs are simply barely hanging on, and any uptick within the fundamentals can be a welcome change.”

BTC/USD circled $20,150 on the time of writing, having recovered from sub-$20,000 ranges in a single day, as per information from Cointelegraph Markets Pro and TradingView.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Each funding and buying and selling transfer entails threat, you need to conduct your personal analysis when making a choice.