The leading cryptocurrency Bitcoin [BTC] is consolidating recent gains alongside a record hashrate that means high miner confidence within the crypto’s price prospects.
In line with market data by CoinMarketCap, the top crypto asset is presently trading largely unchanged on the day near $11,400 USD.
Prices clocked a high of $11,723 USD earlier on Monday, having crossed into bull territory above $11,200 USD over the weekend.
The Bitcoin breather comes as seven-day average of the crypto’s hashrate – a measure of the processing power dedicated to securing as well as recording blocks on the network – rose to a record high of 144.29 EH/s earlier on Tuesday.
That surpasses the previous peak of 143.19 EH/s observed on 18th Sept., consistent with data source Glassnode.
Arcane Research revealed within an official tweet that the record hashrate may be a sign bitcoin’s fundamentals are stronger than ever.
Hashrate has hiked by nearly 40% this year, despite the “halving” event in May that cut miner rewards by half.
A hike in hashrate suggests increasing confidence among miners about the economic viability of operations – in effect more mining machines are coming online as companies invest within the technology.
Miners largely operate on cash and liquidate their BTC holdings to fund operations. As such, they’re likely to dedicate more resources to the computer-intensive mining process if they’re bullish on price.
The options market is additionally aligned for a bullish move, as noted by cryptocurrency derivatives research firm Skew.
Bitcoin’s call options, or bull bets, expiring in one, three, and six-months are drawing higher prices than the put options, or bearish bets.
Analysts expect the cryptocurrency to tests the psychological hurdle of $12k USD within the near term.
While on the downside, support is seen at $11k, followed by the February high of $10,500 USD.