Bitcoin hashrate remains steady above 1 ZH/s

Source: CritpoTendencia Original Title: Bitcoin Hashrate Remains Firm Above 1 ZH/s Original Link: The bearish trend experienced by the broader cryptocurrency market in recent weeks has caused major problems in the mining sector. In particular, it triggered a collapse in hashprice to historic lows, which particularly affected mining companies’ profit margins. Despite this, Bitcoin’s hashrate has remained firm above 1 ZH/s.

According to data from Hashpriceindex.com, the computing power on the Bitcoin network fluctuates between 1.040 and 1.100 Zh/s. This is proof that the market downturn has not been severe enough to force massive disconnections of mining equipment. Such a scenario means that even during major shocks, the network remains completely secure.

Another relevant point is that this measurement of computing power remains strong despite the shift of large mining companies toward AI. 70% of the top digital mining firms are already moving their operations toward the artificial intelligence data sector.

In theory, this should cause a sharp drop in Bitcoin’s hashrate, but so far it has remained solid. The nature of the Bitcoin environment encourages miners to seek margin improvements during critical market periods by increasing connections. This leads to a rise in hash power and also in network difficulty.

The Strength of Bitcoin Hashrate and the State of Hashprice

A very important indicator that goes hand in hand with hashrate is hashprice. This represents the value in dollars of each PH/s of computing power.

Basically, it is a measure of the level of income miners receive for their activity. At the end of November, particularly on the last day of the month, this metric dropped dramatically, with $36.35 per PH/s. A few days later, it hit a low of $35.85.

According to the most recent measurement from the last day, this figure rose to $39.79 per petahash per second. This offers some relief, slightly widening the companies’ margins, and the $40 mark seems to be approaching.

Despite this improvement, the miners’ profitability indicator is not at a level that could be considered beneficial or positive.

It is important to keep in mind that mining companies face high operational expenses, many of which tend to increase progressively. In this sense, each drop in the price of BTC becomes a threat of a deficit in the income-to-expense ratio.

When Bitcoin mining companies enter a deficit, they are forced to increase connections of new equipment, which causes the hashrate to rise. However, this has physical limits. Thus, a persistent deficit forces the liquidation of part of the funds in BTC, which contributes to selling pressure in the crypto market.