Recently, a rare phenomenon has unfolded: Bitcoin’s hashrate has soared simultaneously as the bitcoin price has remained relatively flat. The hashrate growth is likely caused by American miners returning to full production after a summer of periodically curtailing operations as part of their participation in demand response programs.
Some factors indicate that the hashrate will keep growing towards the end of the year. The public miners are expanding like never before, planning to plug in tens of thousands of mining machines by year-end. On the other hand, mining economics are under severe pressure due to the growing difficulty and the depressed bitcoin price. At the same time, miners all over the globe are hit by rising energy prices. These factors could potentially render some mining operations unprofitable, thus holding back the hashrate from its full potential. We will now go through all these factors before I give my 2022 year-end hashrate prediction in the end.