Bitcoin (BTC) hashprice is currently at its lowest level since the March 2020 crash, potentially marking a significant buying opportunity, according to recent insights from on-chain analytics platform CryptoQuant.
Bitcoin Nearing a Bottom?
CryptoQuant’s latest analysis suggests that BTC price action may be near long-term lows, as miners continue to face profitability challenges post-halving. Hashprice, which measures the cost per terahash for miners, is at a conspicuously low level, reminiscent of conditions seen before previous major price surges.
BTC/USD vs. Bitcoin hashprice (screenshot). Source: CryptoQuant
The report notes that historically, low hashprice periods have often coincided with Bitcoin price bottoms, hinting that the current slump may signal another potential upward breakout.
“The highlighted sections in the chart indicate periods where the hashprice dropped to lower levels, corresponding to times when Bitcoin prices were also at or near their lowest points,” explained CryptoQuant contributor Woo Mink-yu. “This suggests that the current low hashprice might indicate that Bitcoin’s price is near a bottom as well.”
Miners Return to Accumulation
Despite ongoing profitability struggles, Bitcoin miners appear to be accumulating rather than selling their BTC reserves. Recent data confirms that miners’ collective Bitcoin holdings have increased, reaching 1,815,832 BTC.
Bitcoin miner wallet reserves. Source: CryptoQuant
This accumulation follows a brief period of miner outflows in July and indicates growing confidence among miners in the long-term price outlook for Bitcoin.
Mining Difficulty Near All-Time Highs
Bitcoin’s mining difficulty has also increased by 3% this week, bringing it close to its all-time high of 90.66 trillion, according to monitoring resource BTC.com. The rise in difficulty highlights the continued strength and resilience of the Bitcoin network, despite the current hashprice challenges.
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CryptoQuant CEO Ki Young Ju emphasized that the U.S. mining sector appears to be stabilizing, with costs around $43,000 per BTC. He noted that unless prices drop below this level, hash rates are likely to remain stable.
