Just before halving, Bitcoin's Hash Rate almost reached its new ATH. Unfortunately, shortly after halving (as expected by many analysts), drastic drops was recorded. According to data provided by blockchain.com, the 7-day average HR value of the BTC network increased for the first time since May 11th. Although small, as only 1% of the rebound may suggest a slow stabilization of this very important indicator.
First positive Hash Rate in 11 days
On 22 May, the Hash Rate oscillated at 94.6 million H/sec, the previous day's value was 93.6 H/sec, an increase of 1.11%. Just before halving, the new ATH was at at your fingertips, unfortunately everything indicates that we will have to wait for the new record.
Drastic drops in the power of the BTC network, among many analysts, caused concern. Many claimed that Hash Rate has fallen into a "death spiral" and is falling to the bottom. Final positive result gives a ray of hope.
After halving, many miners capitulated, as predicted. Reducing the reward for mining the block by half pushed many out of the market.
The drop in the Hash Rate, also affected the extent of the adjustment of BTC's mining difficulties. This in turn recorded a drop from 16.1 T to 15.1 T. From a miner's point of view, this is a good signal as it may encourage some of them to return.
One of the most important factors influencing the profitability of Bitcoin's mining is the price, which at the time of writing this article oscillates around 9200 USD. The drastic fall of the price of the world's oldest cryptocurrencyt will certainly contribute to another wave of capitulation of miners. In turn, the increases will encourage new miners to support the network.
Fees are rising by over 2000%
Looking at the data coming from the Bitcoin network, it is impossible to go past the drastically rising transaction fees. The average fee increased by 2213% compared to the beginning of the year. More than 94 MB of pending transactions at the mempool means that the network is now as clogged as in January 2018.
Bitcoin users are free to set their fees to zero. This was a common practice at the beginning of the network, but today miners more often ignore such transactions or reject them completely.
Fortunately, the situation in the network should slowly stabilize over time. Positive readings from Bitcoin's Hash Rate are the best signal of this.