Bitcoin skyrocketed to nearly $70,000 following Donald Trump’s electrifying speech at The Bitcoin Conference 2024 in Nashville. Trump vowed to keep the U.S. government’s seized Bitcoin, called crypto the “steel industry of 100 years ago” and predicted it could surpass gold. Network hashrate also hit record levels, fuelled by major mining companies deploying cutting-edge hardware, and marking the end of miner capitulation. With a projected difficulty adjustment set to reach new heights, Bitcoin’s network looks stronger than ever. In today’s mining economics rundown, we will cover the following topics.
Bitcoin Surged to Nearly $70,000
Network Hashrate Marking ATH
Hashprice Back above $50/PH/Day
Miner Capitulation Ended
Difficulty Adjustment Projected to New ATH
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Bitcoin Surged to Nearly $70,000
Bitcoin surged to nearly $70,000 following Donald Trump’s speech at The Bitcoin Conference 2024 in Nashville, where he proposed a strategic BTC reserve if elected. Trump also vowed to keep the U.S. government’s seized Bitcoin and called crypto the “steel industry of 100 years ago,” predicting it could surpass gold. He pledged to fire SEC chair Gary Gensler if elected, a promise that was met with applause.
Some were disappointed by Trump’s speech as he used Bitcoin and crypto interchangeably, indicating he had not studied Bitcoin seriously and was simply looking to win votes and money in the marketing operation. However, the market did not care, and we are witnessing continued bullish sentiment, which started in anticipation of Trump’s appearance at BTC 2024. To put it in Trump’s words: Investors are having a good time with their Bitcoin, crypto, and everything else they’re playing with. But for the real good times to come, BTC will have to mark a new all-time high by breaking out of the range it has been in over the last four months.
Network Hashrate Marking ATH
As the Bitcoin price began a strong rebound from $56,000, the network hashrate 7-day moving average (DMA) surged from a local low of 551 EH/s to a record high of 671 EH/s. This impressive 21.8% growth, or 120 EH/s increase within a month, is equivalent to 600,000 units of Bitmain’s Antminer S21 200TH/s units coming online.
Hashprice Back above $50/PH/Day
Publicly traded Bitcoin mining companies are likely important contributors to the recent hashrate growth. These companies began deploying batches of the latest generation ASIC hardware, which they had (pre-)ordered since the end of last year.
However, the largest part of the network hashrate growth occurred once the hashprice recovered above $50/PH/day. This suggests that previously unprofitable mining machines were switched back on or turned to a higher power mode as soon as the hashprice crossed that critical threshold.
Miner Capitulation Ended
The surge in network hashrate was reflected not only in the 7-DMA but also in the 30-DMA. As the 30-DMA moved back above the 60-DMA, it signaled the end of miner capitulation. Post-2020 halving, the capitulation phase lasted one month. The longest capitulation phase in history lasted over three months during the China mining ban in 2021. The post-2024 halving capitulation phase began on May 10th and ended on July 25th, totaling 76 days. To avoid a relapse, hashprice would need to stay above $50/PH/day, and heatwaves in important mining areas like Texas should not occur.
Difficulty Adjustment Projected to Hit ATH
After a downward difficulty adjustment of 5% on July 5th, the adjustment on July 18th was upwards again by 3.21%. With the network hashrate surging to record highs, the difficulty adjustment projected for July 31st is estimated at 11%. Currently, the difficulty is at 82.05T, and an 11% increase would push it to a new all-time high.
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5 Key Take Aways From the Bitcoin Conference 2024
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