The Bitcoin (BTC) hash rate has hit a new all-time high of 150 EH/s according to Glassnode, beating out the previous all-time high of 136 EH/s in late February.
This new record represents a rapid reversal from bearishness in March, when the Bitcoin (BTC) hash rate crashed as low as 75 EH/s due to Bitcoin’s (BTC) sudden crash below $4,000 on March 12. Now the Bitcoin (BTC) hash rate is up 100%, recovering all of its losses and then some. Likewise, the price of Bitcoin (BTC) has recovered almost all of its losses from March.
Zooming out, this surge in Bitcoin (BTC) hash rate indicates that miners are highly bullish about the future of the market.
This is especially true since the upcoming block halving on May 12 will slash mining revenue in terms of Bitcoin (BTC) by 50%, since the block reward will drop from 12.5 Bitcoins (BTC) to 6.25 Bitcoins (BTC). Therefore, in order for the hash rate to sustain itself at levels of 150 EH/s post-halving, Bitcoin (BTC) will have to see a rally to new all-time highs.
Apparently miners are banking on this major rally happening, or they wouldn’t be bringing new mining capacity online at this point.
Indeed, the hash ribbons indicator has switched to a buy, signaling the end of miner capitulation, and whenever this happened in the past there was a major Bitcoin (BTC) rally.