Bitcoin Hash Rate Up by 50%: Miners Increases Production
There is not a dull day in the crypto space, say what? With the year end of 2022 ending on a milder tone than what the overall year had been, given the FTX fiasco and the market crash following the Terra LUNA de-pegging; the start of 2023 had been on a positive note. Various public bitcoin miners have announced their bitcoin production updates for January 2023. The report revealed a continuous expansion in hashrate. Add onto that, there has been a significant rise in bitcoin production from the previous month.
Fun Fact: January saw a huge rebound in mining stocks owing to the rise in bitcoin price by a whopping 40%!
Most of the well known public miners of bitcoin has increased their bitcoin production in January 2023. The miners at CleanSpark has boosted the bitcoin production by 50%. This has also led them to reach a new record of monthly production of bitcoins; about 697 Bitcoins! While CleanSpark has had a god mining, the leader of the BTC production, with 1,527 coins mined in January has been Core Scientific! Following the lead has been Riot, who came in as the second-biggest BTC producer by mining about 740 Bitcoins in the month!
Other than them, three other public miners of BTC; Marathon、 Cipher and Tophash; also has a significant increase in Bitcoin production with the miners reaching 687、343and332 Bitcoins production respectively.
Jaran Mellerud, a bitcoin mining analyst commented that, “In December, a winter storm swept the North American continent and led to surging electricity prices that periodically forced many of these companies to curtail operations. With the weather more benevolent in January, electricity prices stabilized, and miners were able to achieve a higher up-time.”
Since the starting of 2023, Bitcoin has been seeing a strong rally in price and has almost been single handedly responsible for pulling up the overall value of the crypto market. This is very evident from the rise in Bitcoin’s market cap dominance, which has gone from sub-40% levels to over 43% as of writing! In fact, Bitcoin market cap dominance has seen a near 8.5% jump in the past week alone!
This means that as Bitcoin price is rising in the current market scenario, the broader market recovery is being led by none other than the king coin and is thus continuing to gain market cap dominance.
The hash rate has been on the upward trend for most public miners in January, but they have been achieving it at a slower pace than expected. The only exception has been the Texas-based Cipher. They have been able to boost its hash rate by more than 50%, with a 4.3 EH/s. Mellerud commented, “Cipher has been building hard during this bear market, and expect the company to reach its hash rate goal of 6 EH/s of self-mining capacity by the end of Q1 2023.”