Other trackers from BTC.com and Blockchain.com have made slightly lower estimates, both around 275 EH/s. Blockchain.com shows that the hash rate reached an all-time high of 276.8 EH/s on January 20. It is not for nothing that the well-known Bitcoin Archive Twitter account wrote: “Your property is safer than ever.”
In addition to the hash rate, the network difficulty will reach levels never seen before this week. According to data from BTC.com, the next automated adjustment will increase the difficulty by an estimated 2.75% to 38.62 trillion.
The previous adjustment produced a 10.26% increase, Bitcoin’s biggest since October 2022 and only its second double-digit increase since mid-2021.
Miners continue to sell reserves
Analyzing the climate, CoinLupin, an employee of the on-chain data platform CryptoQuant, warned that miners are still selling their Bitcoin reserves. They may do this to bolster capital in the event of a market turnaround.
Now for the first time in a long time they have improved profitability and mining costs are lower than Bitcoin prices. Normally there could be more active mining going on, but now they seem to see it as an opportunity to secure money. One day there may be an adjustment in the price in the part where they get enough cash and start accumulating Bitcoin again. They are constantly reducing their Bitcoin holdings during the surge.
CryptoQuant’s miner position index, which measures Bitcoin outflows to miner wallet exchanges relative to their one-year moving average, has captured several withdrawal spikes since January 14.
At 1,837,138 Bitcoin, miner reserves are currently the lowest since December 2021.