<

Bitcoin’s Hashprice Surges to New Highs in May, Fueled by Rising On-Chain Activities

Bitcoin’s hashprice has been on the rise in recent months, and the latest report from Blocksbridge has shed some light on the reasons behind this trend. According to the report, the price rally of BTC has pushed the hashprice to stay mostly above $75/PH/s last month, despite a low in terms of the daily production benchmark.

The increasing on-chain activities continue to bring in more transaction fees, which is also contributing to the rise in hashprice. After the first week of May, bitcoin’s hashprice has reached over $90/PH/s, the highest since September, indicating a further increase in demand for bitcoin mining.

On the mining operation front, it appears that some of the largest pubco miners have further slowed down the pace of liquidating their mined assets. The report notes that as of May, 10 major mining companies have released monthly updates for April, and they added up to 58.6 EH/s in realized hashrate, accounting for 17.1% of bitcoin’s block rewards last month.

For most of the second half of 2022, these companies had consistently been selling more than 100% of what they mined after the liquidation-to-production ratio peaked in June. Since then, that figure has mostly remained between 110% and 120% but declined to less than 100% in March for the first time in over six months. The liquidation ratio further dropped to 95% in April as bitcoin’s price bounce let everyone catch a breath.

This trend indicates that the mining companies are holding onto their assets, rather than selling them off immediately. This could be due to the anticipation of a further increase in bitcoin’s price in the coming months. It also shows that the miners have some level of confidence in the long-term viability of the cryptocurrency.

In conclusion, the report from Blocksbridge highlights the increase in bitcoin’s hashprice, which can be attributed to the price rally of BTC and increasing on-chain activities. Additionally, the trend of the mining companies holding onto their assets instead of immediately selling them off could indicate that they have some level of confidence in the cryptocurrency’s long-term potential.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like

LATEST NEWS

LASTEST NEWS