Value

Bitcoin

Impact

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin network’s hashrate hit a record high of 742 EH in September, increasing mining costs and reducing miners’ profits.</li>
 <li>Miners sold off 3000 BTC due to the rising operational costs and declining revenue.</li>
</ul>
<p>The <a href="https://coineagle.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> [BTC] miners had a tough time in September as the network’s hashrate reached a new peak, impacting their earnings.</p>
<p>The network hashrate, which measures the computing power required to mine BTC, reached a record high of 742 EH on the 1st of September.</p>
<h2 id="impact-of-high-hashrate">Impact of High Hashrate</h2>
<p>While a high hashrate indicates better network security, it also increases the network difficulty, which measures how challenging it is for miners to find the next BTC block.</p>
<p>This means that miners needed more computational power to mine Bitcoin, which was becoming increasingly difficult to find.</p>
<p>As a result, the average cost of mining a single BTC could potentially rise, putting more pressure on smaller miners.</p>
<p>On 3rd September, the total cost to mine a single BTC was estimated at $71.5K, while the average spot price for the asset on the same day was $57.4K.</p>
<p>This significant difference at the start of September strained miners’ profits, with daily revenue dropping from over $36 million in late August to around $26 million in September.</p>
<h2 id="miners-selling-off-btc">Miners Selling Off BTC</h2>
<p>As a result of these increased production costs and declining revenue, miners may have been forced to sell their BTC holdings.</p>
<p>CryptoQuant data shows that the Miner Reserve, which measures the total BTC held by miners, dropped from 1.817 million BTC to 1.814 million coins in a few days.</p>
<p>This indicates that miners sold off part of their holdings, with a total of 3000 BTC being sold off in September, most likely to cover the increasing operational costs.</p>
<p>At the time of writing, BTC was valued at $57.9K. A sustained minor sell-off could apply more downward pressure on the BTC price.</p>
<p>Therefore, this situation is worth monitoring alongside macro updates.</p>

Bitcoin Network Achieves Unprecedented Hashrate, Predicts Surging BTC Value

Table of Contents

CoinEagle.com

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