CryptoQuant data indicates that Bitcoin may see less selling pressure from miners in the near future, as a result of the improved profitability of this group of market participants and the recovery of the hash rate after the price of the cryptocurrency reached the $69,000 range.
Bitcoin network hash rate recovery:
According to a CryptoQuant report, the Bitcoin network has seen a noticeable recovery in hash rate coinciding with the recent rise in the currency’s price.
The hash rate fell to its lowest levels on July 9, recording an 8% decline from its all-time high, but later recovered to reduce this decline to only 3%.
On July 9, Bitcoin's hash rate hit its lowest level since February 28, but by the time of writing, the rate had risen by 6% to 604 exah/s.
CryptoQuant analysts believe that this recovery in the hash rate is often accompanied by a continued rise in the price of Bitcoin.
Along with the higher hash rate, miners have seen their profitability increase, as they are now receiving higher revenues than they have been since the Bitcoin mining reward fork event in April.
This reflects a P/L sustainability metric that measures mining revenue growth compared to increasing mining difficulty.
This increase in profitability shows that miners may be less likely to sell their Bitcoin holdings to cover their operational costs, contributing to less selling pressure on the coin.
In addition, the recent rise in the price of Bitcoin has increased daily revenue for miners by approximately 50%.
Revenues rose from $22 million at the beginning of the month to about $32 million currently, which reinforces the hash rate recovery.
I would imagine they still need to recover from the halving that happened in April, as they are using the same amount of electricity and compute power to produce half the amount they were making before the halving.