Insights

Third-most aggressive hash rate adjustment to the upside in the past five years

Quick Take

  • A lot of noise has surrounded Bitcoin’s vast hash rate growth this year.
  • Identifying the hash rate growth over a three-month moving average to cancel out daily incremental moves would put current hash rate adjustment at 52%.
  • Only on two other occasions had more substantial growth for Bitcoin hash rate.
  • In May 2021 — a 70% adjustment coming off the China mining ban
  • After the 2019 bear market — a 65% adjustment.
  • The most likely explanation is that many mining companies went public and financed a lot of mining equipment; as it is now profitable to mine Bitcoin, we are seeing a lot of ASICS plug back into the network.
Hash Rate: (Source: Glassnode)
Hash Rate: (Source: Glassnode)

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