Bitcoin miners seem to be long term bullish on bitcoin because the hash rate is setting new highs despite the last day sell-off.
The chart below shows that the bitcoin network hit yesterday 114 quintillion hashes per second.
The hash rate is the cumulative hash power used by all the miners to validate transactions. The bigger is the hash rate, the more secure is the network. This is the biggest computing power used to secure a network.
Mining bitcoin dedication
Hash power increase is a clear indicator of a growing interest in bitcoin mining. Despite the 45% price correction in the last 3 months hash rate has gone up steadily. Bitmain opened this week one of the biggest mining farms in the wold in Texas.
Compared to the time when bitcoin peaked in 2017, the electricity consumed is nearly 3 times biggers now. At this hash rates and network difficulty the cost to produce one bitcoin excluding the mining hardware is somewhere between $5250- $6,500 as some miners report.
All this increased interest in bitcoin mining looks like miners are anticipating higher prices for the crypto asset.
Block halving only months away
Also, bitcoin is heading to the block halving which means that after May 2020 miners will make half of the money they make today. In order to keep the same level of profits as today price should double or difficulty should adjust dropping violently. The difficulty drop is a result of miners switching off their mining hardware.
Miners are usually sellers because they have to pay electricity and other operating costs. After the halving, the amount of bitcoin produced daily will be half of the bitcoin produced today removing 50% of the selling pressure that comes from miners.