Bitcoin Miners Generating BTC at Level Last Seen Post Halving; Unphased by the Drawdown
The crypto market may be experiencing the losses, but bitcoin miners remain unphased by the beating the digital asset took the past week.
Bitcoin miners are as bullish as ever and pushing the hash rate of the network to new highs.
Breaking yet another record, miners are conducting more than 130 hashes per second, keeping the network as secure as ever.
Bitcoin’s difficulty adjustment meanwhile shifted lower this time at 17.3 trillion. With the negative adjustment, the bitcoin miner profitability took an upswing to $0.0898, as per Bitinfocharts.
Bitcoin miner’s profitability was around $0.161 for 1 THash/s in early May when the halving took a hammer to it, and profitability dropped 54%.
In mid-July, it bottomed at $0.0674, and since then, bitcoin mining' profitability has been trying to sustain around $0.1, with no luck, so far.
Interestingly, amidst this jump in hashing power, miners are contributing to producing Bitcoin while the difficulty of generating BTC reduced; the block time has fallen to 8 minutes 2 seconds from the regular 10 minutes.
On September 3rd, the block time to mine bitcoin was just over 11 minutes only to continue to drop from there, which means miners are generating bitcoin at a fast pace. The last time block time was at this level, and lower, was in early June, following the halving on May 11.
Like bitcoin miners who don’t care about this momentary drop in the price, investors are unperturbed just as well.
Investors are taking this as an opportunity to buy the dips as bitcoin’s address activity continues to sustain nicely after shaking out the weak hands.
“We also are seeing a nice uptick in transaction volume, indicating the rising interest around this $10k price level,” noted Santiment.
Given that despite making several attempts in the past week to break the important psychological level of $10,000, bitcoin remains above, it also speaks well for the leading digital currency.
Bitcoin, however, did break down below $10k and today went down to $9,932, after surging to $12,000 level last week, because of the unwinding of “very crowded positions” in DeFi, which “resulted in a spillover effect.”