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The Coin Rise 2025-01-05 16:52:28

Bitcoin Hashrate Hits Record High

Bitcoin (BTC) miners are waking up to new realities in the industry. According to data from CoinWarz , the Bitcoin hashrate has hit an all-time high (ATH) of over 1,000 exahashes per second (EH/s). The hashrate is the total computational power that secures the network and processes transactions. Bitcoin Miners Double Hashrate in a Year The recent increase sets the hashrate to approximately twice its level last year. In January 2024, Bitcoin’s hashrate fluctuated around 510 EH/s. As of this writing, the hashrate has reduced slightly and hovers around 780 EH/s. However, the spike to above 1,000 EH/s shows that BTC miners have dedicated more computational resources to the blockchain. This increased resources ultimately implies an improved security network. The development is significant, considering miners have seen their reward crash from 6.25 BTC to 3.125 BTC per block. This slash occurred after the April halving event , which reduced all miners’ rewards. So, the increased hashrate means miners have gone out of their way to make the network more resistant to attacks. Strategic Adaptations Post-Halving Following the halving in 2024, BTC’s strong performance helped offset the headwinds. According to JPMorgan, mining firms had to acquire other miners with turn-key facilities. The aim was to boost their power pipeline. Additionally, these miners have prioritized the accumulation of BTC on their balance sheets. Last month JPMorgan said it raised the price targets for four Bitcoin mining stocks. This was to reflect the value from the miners’ electrical power assets as well as their Bitcoin holdings. Institutional Interest Bolsters Bitcoin’s Network The improvement in security of the Bitcoin network as a result of increasing hashrate is crucial given soaring interest from institutional players. There has been an upsurge of investment by institutional investors into Bitcoin exchange-traded funds (ETFs) products. Available data reveals that in November 2024, Bitcoin ETFs flipped $100 billion in net assets, marking the first time to achieve that feat. JPMorgan noted that there was huge profit-taking in the sector in November. At the moment, stakeholders anticipate an uptick as more institutional investors embrace the asset. A driving force is the regulatory clarity the incoming administration of President-elect, Donald Trump could provide to the industry. The post Bitcoin Hashrate Hits Record High appeared first on TheCoinrise.com .

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