Bitcoin Hashprice Reaches One-Month High, Indicating Bullish Momentum for Miners.

Bitcoin Miners See Relief as Hashprice Hits One-Month Highs with Rising Fees and Strong BTC Price

Bitcoin miners are finding some relief as Hashprice, a key metric for mining profitability, hits its highest levels since mid-December, driven by both rising transaction fees and a buoyant Bitcoin price.

Hashprice, developed by Luxor, measures the daily income of miners based on their contribution to Bitcoin’s hash power, effectively estimating the expected earnings from 1 TH/s of hashing power per day. According to Glassnode, hashprice is currently above $62 PH/s, reflecting an uptick in mining returns.

A significant factor behind this rise is the sharp increase in Bitcoin’s price, which has surged to over $100,000—a 56% increase over the past three months—offering miners much-needed relief. Additionally, miner fees have also increased slightly, with around 12 BTC in fees per day, the highest in over a month. This surge in miner fees is partly due to the rise in inscription activity on the network.

However, the situation hasn’t always been so favorable. The April 2024 halving event, which reduced the mining rewards by half, led to a significant drop in hashprice from around $115 PH/s.

The halving created a challenging environment for miners, with many struggling in terms of share price appreciation throughout much of 2024. Mining revenue for most of the year remained below the 365-day simple moving average (SMA). But since November, the revenue has rebounded, reclaiming the SMA, which is often viewed as a bullish signal.

Despite hashrate hitting new all-time highs, which increases network difficulty and reduces miner profitability, the combination of higher Bitcoin prices and rising transaction fees is encouraging miners to continue their activities.

Andre Dragosch, European Head of Research at Bitwise, shared an exclusive comment with CoinDesk, stating that miners are in a healthier position than last year.

“We’ve recently observed a slight decline in the network’s hashrate since its peak in early January. However, the increase in Bitcoin’s price and higher transaction counts have contributed to the recovery in hashprice,” Dragosch noted. “This recovery should incentivize miners to ramp up their hashrate again.”

He also pointed out that Bitcoin miners are well-capitalized, as evidenced by the continuous growth in Bitcoin holdings by miners. “Miners are selling less than they are mining daily, indicating a healthy accumulation strategy for the year ahead,” Dragosch added.

With Bitcoin’s price showing strength and transaction fees supporting mining profits, miners appear to be in a much more favorable position moving forward.