Bitcoin (BTC) miners are continuing to show their dedication to the network as the hash rate approaches record levels, according to a recent report from Glassnode.
The report highlighted that the 14-day moving average hash rate has reached 666.4 exahashes per second (EH/s), just 1% below the all-time high. This indicates that miners are persistently adding new mining hardware despite challenging market conditions.
With the increase in hash rate, there has also been a corresponding rise in mining difficulty. The current average required hashes to mine a block is at 338,000 exahash, the second-highest in Bitcoin’s history.
Despite a decline in miners’ revenue since Bitcoin’s price peak in March, miners are still pushing forward. The decrease in revenue is mainly due to falling fee pressure, driven by decreased demand for monetary transfers and fewer fees from Runes and Inscription-related transactions.
Currently, Bitcoin miners’ block subsidy revenue is at $824 million on the 30-day moving average, while transaction fee revenue amounts to $20 million for the same period.
A Dune Analytics dashboard by user CryptoKoryo revealed that Runes and Inscription-related transactions have failed to reach the 50,000 threshold on six out of eight days between Aug. 30 and Sept. 6. This is a significant deviation from the norm since the Runes protocol deployment on April 20.
Miners have traditionally sold most of their mined BTC to cover mining costs, but there has been a shift in behavior. They are now retaining a portion of the mined supply in their treasury reserves, which is seen as an interesting development.
The report noted that traders are showing a preference for holding Bitcoin, as on-chain settlement volume has decreased. The network is processing about $6.2 billion in daily transaction volume, which is considered a negative sign of network usage and throughput.
Monthly inflow volumes to centralized exchanges have also dropped below the yearly average, indicating reduced investor demand and lower trading activity among speculators at current price levels.
Despite a decline in spot trading volume momentum over the past 90 days, there has been increased sell pressure on centralized exchanges. This suggests that traders are selling off their holdings, possibly due to the overall drop in trading activity during the last quarter.
Glassnode analysts pointed out both positive and negative trends in Bitcoin’s price action in August. However, given the negative indicators, Bitcoin is currently in a low-risk zone that could be influenced by external factors, such as macroeconomic developments.
Overall, the resilience of Bitcoin miners and the shifting behavior of traders indicate a dynamic market environment that could see significant price movements in the near future.