Bitcoin crossed $50k, a level last seen in December 2021. Deployments of the latest generation ASICs pushed the network hashrate through the 600 EH/s level. Transaction fees are decreasing as the competition for block space is less fierce than at the end of last year. The hashprice maintains above the $80/PH/Day level. But will it hold on much longer with the upcoming difficulty adjustment? In this edition of The Bitcoin Mining Block Post, we delve into the following topics:
Bitcoin Price
Network Hashrate
Network Difficulty
Transaction Fees
Hashprice
ASIC Prices
Fun Fact
Bitcoin Price
Bitcoin has shown serious strength in the first weeks of February. With a 17.5% surge since the beginning of the month, BTC broke through the psychological level of $50K. The daily candles saw the highest close since December 2021.
The first laser eyes started to appear, and the uproar for an all-time high before the halving became louder. To reach a new ATH, we still need another 38% increase. With the halving projected to take place around the 20th of April, Bitcoin would have to make such a move in less than 10 weeks.
The demand from ETFs is an important factor in driving Bitcoin Price in 2024. If you like to stay up-to-date in the ETF’s net inflow, check out this tracker by Root.
Network Hashrate
The network hashrate’s 7-day moving average surpassed the 600 EH/s mark in the first week of February. This achievement is remarkable considering that the hashrate had only crossed the 300 EH/s threshold for the first time exactly one year ago on February 13, 2023. The latest generation of mining machines, such as the Antminers S21’s, appear to be rapidly making their way onto the racks. Currently, the hashrate is taking a breather and stands at 584 EH/s.
Network Difficulty
The last difficulty adjustment occurred on February 2nd, marking a 7.33% increase, which set a new all-time high of 75.50T. With less than 2 days remaining in the current difficulty epoch, and with hashrate on the rise, it appears that we can anticipate a roughly 9% difficulty adjustment.
Transaction Fees
The mempool, holding pending transactions, is currently experiencing a smooth clearance, leading to a decrease in the fee rate. This is beneficial for individuals seeking to send quick transactions. However, it presents a less enjoyable scenario for miners who have become accustomed to high transaction fees over the past few months.
The decrease in transaction fees has caused the transaction fees as a percentage of the total block reward to reach levels last observed in October 2023. In 2024 the competition for block space has slowed down, as fewer inscriptions are being added compared to the end of last year.
Hashprice
Despite the decrease in fees, the hashprice has reached the $89/PH/Day mark, primarily due to the bullish Bitcoin price action. However, if BTC remains at its current price levels, the hashprice is expected to decrease back towards the $80 level due to the upcoming difficulty adjustment.
ASIC Prices
Since the beginning of the year, ASIC prices have remained virtually unchanged. In February the price index has not moved at all. The premium for the most efficient machines (under 25 J/TH) compared to those ranging from 25 to 38 J/TH has dwindled to less than a dollar per TH. Just a year ago, the price difference was nearly $17/TH.
Fun Fact
On February 11th the 830,000th block was hit. Only 10,000 blocks to go until the next halving event which is projected to occur the 20th of February 2024.
