From a value of 90 EH / s, after a 50% drop, the hash rate exceeded 110 EH / s.
Income also recovered from 5.6 BTC / EH to 8.8 BTC / EH.
The bitcoin (BTC) market has shown great strength since the local low of USD 29,800 in July, based on fundamental parameters of the network and strong spot demand that supports said rally. This is how the analytical firm Glassnode expresses it in its weekly market report # 33, which highlights a significant recovery in the hash rate and in the miners’ income.
With the so-called great migration of Bitcoin miners, reported by CriptoNoticias, the relocation of these out of China continues and the consequent recovery of the hash rate from the lows reached in July, the report maintains. “The hash rate had peaked in May at 180 EH / s before dropping 50%. This gives an idea of the magnitude of the miners affected, approximately half of the total ”, point out the authors.
In the past two months, the hash rate has recovered 25% from its 2021 low of 90 EH / s, says Glassnode. This would suggest, according to the report, that the equivalent computing power of 12.5% of the affected miners is back online. For Sunday June 15, the hash rate was 112.5 EH / s, as highlighted in the graph, a 25% increase in two months.
At the time of writing this article, in data from fork.lol, a hash rate of 128.28 EH / s is recorded, with which the increase from the local minimum mentioned until this Thursday 19 rises to 43%.
An auspicious crossover of bitcoin hash tapes
The so-called hash rate tapes (Hash Ribbons) are used to model when stress enters the mining market. A simplified version of these tapes takes the 30- and 60-day moving averages and, according to the report, the interaction between the two curves is observed.
When the 30-day moving average (30D) crosses the 60D down, it is usually a sign of reduced revenue, as the hash rate decreases rapidly, say the authors. “This can create additional selling pressure as miners are generating less revenue to cover their CAPEX and OPEX costs,” the study says. CAPEX, for its acronym in English, is the capital expenses when a good is acquired, while OPEX represents the operational expenses.
The opposite case, that curve 30D crosses 60D upwards, is generally of an indicator of hash rate recovery and miners capitulation. “After this, the remaining miners have increased their market share and thus earn more BTC per hash,” the authors assert. The indicated crossover occurred in May and occurred again at the end of last week.
Glassnode takes the miners’ total revenue in BTC and divides it by the active hash rate, resulting in the average BTC earned per processing exahash.
Since the May 2020 halving the income of miners has decreased from 9.5 BTC / EH to a low of 5.6 BTC / EH in May. After adjusting for difficulty in response to the great migration, miners who stayed online have seen their income grow by 57%, to 8.8 BTC / EH.
In the following graph, it can be seen that at the end of last week this type of crossover took place.
As a result of the revenue improvement, the miners’ net BTC balance continued to increase over the past two months. “Net growth of miners’ balances has now reached 5,000 BTC per month, demonstrating a net reduction in mandatory selling pressure from miners,” the study notes. The less sales pressure miners have, the more likely they are to retain their bitcoins, reducing market liquidity as well as the supply of bitcoins available for purchase. This, in principle, should favor an uptrend in bitcoin price action.