During March the Bitcoin (BTC) hash rate plummeted from a record high of 136 EH/s to as low as 75 EH/s, due to the price of Bitcoin (BTC) crashing from over $10,000 to as low as $3,850. However, the Bitcoin (BTC) hash rate is once again quickly accelerating and is back up to 125 EH/s.
There are two primary reasons why the Bitcoin (BTC) hash rate is surging in April. First off, Bitcoin’s (BTC) price has recovered to around $7,000, restoring profitability for numerous mining farms. Another major reason is that miners are banking on a big block halving rally, and mining lots of Bitcoin (BTC) now in expectation that Bitcoin’s (BTC) value will soon begin to drastically rise.
Indeed, the block halving is expected to occur around May 12, which is less than one month away, and a speculative rally could begin to take shape any day now.
That being said, there are two scenarios for the Bitcoin (BTC) mining world. The first scenario is that Bitcoin (BTC) sees a major rally, which will allow the Bitcoin (BTC) mining hash rate to stay the same or keep increasing even when the halving comes. Basically, the halving will reduce the amount of mined Bitcoins (BTC) by 50%, but if Bitcoin’s (BTC) price increases by 100% it will cancel out the halving reduction in mining revenues, and mining revenues will stay the same.
Another scenario is that Bitcoin (BTC) doesn’t rally at all or has only a weak rally. If that happens, the Bitcoin (BTC) mining world would witness a major crash, since the 50% reduction in mining revenue when the halving happens would wipe out the profit margins of most mining farms.
Thus, the Bitcoin (BTC) mining world is anxiously watching the Bitcoin (BTC) market, and hoping and praying that a block halving rally will begin soon.