According to data, the current three-month growth in the Bitcoin mining hashrate was the third greatest in the previous five years.
Only the fallout from the 2021 China ban and the 2019 bear market witnessed faster gains, an expert on Twitter said. The entire amount of computer power that miners have linked to the Bitcoin blockchain is shown by a metric called "mining hashrate."
Miners are now bringing more equipment online on the BTC network as this metric's value increases. Such a pattern shows that chain validators are now attracted to mining the blockchain.
On the other side, a decreasing value of the signal suggests that some miners are unplugging their equipment from the network. This would indicate that the typical miner isn't currently finding Bitcoin mining to be very lucrative.
This is a graph that displays the 3-month percent change in the Bitcoin mining hashrate as well as its trend over the previous several years.
The value of the metric seems to have been quite high in recent days - James V. Straten on Twitter
The orange curve in the accompanying image represents the Bitcoin mining hashrate, which has experienced a significant climb in recent weeks. The indicator's 3-month percent change has likewise skyrocketed as a result of this outstanding steady rise.
This spike indicates that the metric's value has increased by around 52% over the previous three months. The hashrate is now at its third-highest level in the previous five years on the BTC blockchain.
The biggest one during this time period happened in April 2019 following the end of the 2018–2019 bear market. During bad markets, many miners can find it unprofitable to mine the coin. As miners withdraw from the network, the hashrate may therefore drop considerably.
Miners suddenly found it highly profitable to mine the asset again when the recovery in April 2019 occurred immediately after the worst portion of the bear market. As a result, they swiftly reconnected their computers, which is why the hashrate showed such a sharp increase.
As the bull run in the second half of 2021 began, there was a second-largest 3-month upward momentum. A prohibition on Bitcoin mining in China earlier that year resulted in a large-scale exodus of miners from the nation.
This movement can also be observed in the graph, as the hashrate had a significant negative 3-month fluctuation from May to July 2021. The hashrate returned as miners concluded their relocation and rebuilt their facilities.
The indicator's recent trend is now fascinating. Even if the price had a severe decline during the bear market of 2022, the hashrate simply increased in the upward direction.
The most plausible explanation for this is that miners made enormous profits during the 2021 bull run, so they planned their development strategies with those earnings in mind. It only took some time to build the facilities, which is why there was positive growth during bad market conditions.
Naturally, such growth and the recent rally's ability to restore mining's profitability are both likely contributors to the indicator's recent sharp growth.