The hash price of Bitcoin has reached a two-month peak, exceeding $50 for the first time since mid-August, as reported by Hashrate Index.
On October 17, the hash price peaked at $53.64, its highest point since August 23. This surge follows a drastic decline in September, when the hash price hit an all-time low of under $40.
Nico Smid, the founder of Digital Mining Solutions, remarked that this recent increase offers vital relief to miners affected by tough market conditions.
In the previous year, the hash price consistently stayed above $60 per petahash per day (PH/day). Smid mentioned that for Bitcoin to return to that level, considering the current network difficulty, it would need to climb to approximately $83,000.
The hash price essentially gauges the daily earnings of miners based on the computational power utilized in their mining operations.
What is Driving the Hash Price Recovery?
The rise in hash price aligns with Bitcoin’s recent price surge. On October 16, Bitcoin reclaimed the $68,000 mark for the first time since August, experiencing nearly a 10% increase over the week before slightly retreating to $67,126 at the time of this writing, according to CryptoSlate data.
This price movement has ignited speculation that Bitcoin may be poised to repeat its “Uptober” trend after a prolonged period of sluggish trading.
Additionally, rising network fees have contributed to the hash price recovery, driven by increased activity on the Runes protocol. Dune Analytics reports indicate that Runes transactions accounted for over 10% of all Bitcoin network transactions last week, highlighting a surge in network engagement.
This heightened activity has led to a high-fee environment, as corroborated by data from OKLink. Furthermore, a 5% decrease in the network’s hashrate, dropping from 700 EH/s to 665 EH/s, could also play a role in the uptick of the hash price.
Although the precise reasons remain unclear, Smid speculated that recent hurricanes in the U.S. may have disrupted mining operations in affected regions due to power grid disturbances.
U.S. Miners Strengthening Their Position
The 35% bounce in hash price is particularly encouraging for miners in the United States.
Recent findings from JPMorgan show that U.S.-listed Bitcoin miners now command a record 28.9% of the global network hashrate, representing a remarkable 70% increase in their collective power this year.
This substantial growth has outpaced the overall network’s 33% increase, underscoring the operational efficiency of U.S. miners relative to competitors in other regions.
Furthermore, JPMorgan noted that mining stocks saw a surge in early October as Bitcoin prices rose, with companies focusing on high-performance computing (HPC) attracting ongoing interest from hyperscalers eager for strategic alliances.