Summary
- Bitcoin miners increase their hash rate signaling a positive sentiment.
- Significant miner capitulation was observed on August 5.
Bitcoin network hash rate reached a new ATH this week, hitting 627 EH/s as reported by CryptoQuant.
In a new report, CryptoQuant highlights that the Bitcoin network hash rate’s new ATH was seen on Tuesday, marking a recovery from the 8.5% drawdown in early July.
This expansion comes despite the recent price drops of Bitcoin and record-low hash prices, showing a positive sentiment among miners.
In a post on X, the head of research at CryptoQuant, Julio Moreno revealed the Bitcoin network hash rate on August 12 and shared a graph illustrating its trajectory.
The Bitcoin hash rate is the computational power used by BTC miners to mint new coins and verify new transactions on the network.
Miner Capitulation: Bitcoin Daily Miner Outflows Spiked to 19K BTC
CryptoQuant said that there was a miner capitulation event last week as miner outflows spiked after BTC dipped below $50,000 on August 5.
According to the same report, Bitcoin daily miner outflows spiked to 19,000 BTC on that day, which marked the highest level since March 18.
CryptoQuant also added that miners sold some BTC as their average operating profit margins were squeezed to 25% which was the lowest number since January 22.
Miner capitulation events can be seen near local bottoms for Bitcoin prices during bull markets. Since 2023, a spike in miner outflows coincided with local bottoms for the coin in March 2023 following the Silicon Valley bank sell-off and January 2024 which saw the price correction of BTC following the launch of Bitcoin ETFs in the US.
Bitcoin Miners, Not at Risk
The positive sentiment among Bitcoin miners comes as they are reportedly not at risk, as we reported yesterday.
CryptoQuant author, Axel Adler Jr. noted that miners are not at risk despite seeing their average income drop after this year’s halving. BTC miners’ net amount in reserves reportedly remains at 713,000 BTC.
Regarding the price of Bitcoin today, at the moment of writing this article, BTC is trading above $60,000 up by almost 3% in the past 24 hours.