Today there have been a sudden and significant increase in the Bitcoin hashrate.
According to CoinWarz data, yesterday the hashrate had dropped to 110 EH / s, while today reached a maximum of more than 164 EH / s, which is equivalent to a growth of 49% in a single day.
However, today it did not remain constant at that figure, so much so that it seems that it has already returned to above 120EH / s.
However, despite that, it is a significant increase compared to yesterday: while the average was around 130 EH / s, today the average is likely to be higher at the end of the day.
After hitting the lowest point in the last six months, dropping below 100 EH / s on October 27, and then 101EH / s on October 3, thanks to the powerful reduction in difficulty that day, the hashrate started to rise again, so much so that yesterday it exceeded a daily average of 130 EH / s.
The fact is that reducing the difficulty increases the profitability of mining, to the extent that it probably led some miners who had turned off some machines in the last few days, or redirected to mining other cryptocurrencies, to turn them back on or switch back to Bitcoin.
This is clearly demonstrated in the graph of the estimate of Bitcoin's mining profitability for the past few weeks, which plummeted to $ 0.06 a day for THash / s on October 18, and then rose to $ 0.15 yesterday, almost double. The estimated profitability of Bitcoin mining has not been this high since before the halving on May 11, 2020.
Reason for Bitcoin Hashrate Increase
It is no wonder, therefore, that after yesterday's performance in Bitcoin mining profitability, miners have now significantly increased the hashrate involved in this activity.
These are also endless dynamics, that is, they do not have a fixed point of equilibrium towards which they will sooner or later converge.
There are many variables that affect this dynamic, making it difficult to predict. Probably one of the variables with the greatest impact is the price of BTC, which directly affects the profitability of mining, encouraging miners to commit more or less hashrate.
As such, it is a continual adjustment by miners to try to keep mining profitably, without having an impact on price. In other words, these are not dynamics that can affect the price of BTC, on the contrary, it is the change in the market price of BTC that can have an impact on these dynamics.