Last week, the price of bitcoin took a tumble, and right alongside it, the network’s computing muscle flexed down from a whopping 806 exahash per second (EH/s) on Dec. 14 to a mere 771 EH/s by Dec. 21. However, over the past three days, the hashrate has bounced back, rising by 11 EH/s from its recent dip.
From Record Highs to Sudden Dips
Just when bitcoin miners were starting to bask in the glow of those sky-high prices and the extra cash rolling in, the price of bitcoin (BTC) took a nosedive. On Dec. 17, it soared to an all-time high of $108,364 per coin, but by Dec. 20, just three days later, it plummeted to a low of $92,118 per coin. Since then, BTC has been bouncing around like a pinball in an arcade, and bitcoin mining revenue has taken a tumble.
The network’s hashprice, or the estimated daily value of 1 petahash per second (PH/s), was strutting at $65.10 per PH/s on Dec. 15, the peak in the last month. By yesterday, however, on Dec. 23, the hashprice had slumped to $55 per PH/s, showing that BTC miners took a 15.52% hit. Yet since then, it has bounced back somewhat, climbing 6.24% to $58.43 per PH/s on Dec. 24. The network’s computing muscle also felt the blow after hitting its own all-time high.
Bitcoin network hashrate on Dec. 24, 2024, over the 7-day SMA according to hashrateindex.com.
Just like BTC’s price, the network’s hashrate hit an unmatched peak on Dec. 14, reaching a massive 806 EH/s over the seven-day simple moving average (SMA). Currently, at 781.98 EH/s, the hashrate has dropped by 24 EH/s from the high point. The average block interval sits at around 10 minutes 1 second, suggesting Bitcoin’s difficulty might not swing much either way, but with five days to go until the retarget on Dec. 29, anything could happen.
The rollercoaster ride of Bitcoin’s price and hashrate showcases the intricate dance between miner profitability and network hustle. As miners tweak their strategies to keep up with the ever-changing metrics like hashprice and block intervals, it highlights the nimbleness needed to succeed in this wild ecosystem. These changes give us a peek into the toughness and unpredictability that define bitcoin’s economic setup.
With the next difficulty adjustment just around the corner, everyone’s watching to see how the network will react to these recent twists and turns. Miners and investors are left to navigate the whims of market forces, as bitcoin’s constantly shifting numbers continue to mold its economic scene. Whether these tweaks will lead to calm waters or more choppy seas, the days ahead will shed light on where the network’s heading next.
