Bitcoin Hashprice Slump Mirrors 2020 Levels: Is a New Bull Run Imminent?

Bitcoin current hashprice levels echo those seen in 2020 before BTC’s breakout to new all-time highs. With miners facing profitability challenges, this could signal a buying opportunity as Bitcoin approaches a potential price bottom.

Bitcoin hashprice has recently plummeted, drawing comparisons to the conditions that preceded the cryptocurrency’s explosive growth in 2020. Currently, Bitcoin (BTC) is trading at $58,285, with on-chain analytics suggesting that this may be a prime buying opportunity as the market shows signs of nearing a bottom.

Hashprice Comparison Hints at BTC Price Bottom

In a recent Quicktake blog post on August 30, CryptoQuant highlighted the correlation between Bitcoin’s hashprice and its price action, indicating that the current low hashprice could be signaling that Bitcoin is close to its long-term lows. The hashprice, which measures miner profitability on a per terahash basis, is currently at one of its lowest points, reminiscent of periods that have historically preceded significant price recoveries.

Woo Mink-yu, a contributor to CryptoQuant, explained this correlation by pointing out that previous dips in hashprice, as shown in highlighted sections of their charts, have often aligned with Bitcoin price bottoms. This pattern suggests that the current low hashprice might indicate a similar scenario, with Bitcoin’s price potentially ready to rebound.

Bitcoin Miners Return to Accumulation

Amidst these developments, Bitcoin miners appear to be accumulating rather than selling their BTC. According to recent data from CryptoQuant, miner wallet balances have increased, currently holding 1,815,832 BTC. This accumulation trend comes at a time when mining difficulty has risen by 3%, bringing it close to all-time highs of 90.66 trillion.

Earlier reports indicated that U.S. mining costs are around $43,000 per BTC, suggesting that the hash rate is likely to remain stable unless Bitcoin’s price drops below this threshold. CryptoQuant’s CEO, Ki Young Ju, noted that miner capitulation is nearly over, with the hash rate nearing its all-time high, painting a picture of sustainability within the U.S. mining sector.

As the market continues to watch these trends, the ongoing hashprice slump may be setting the stage for a potential Bitcoin price recovery, echoing the post-halving surge witnessed in 2020

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