Bitcoin's Hash Rate Remains Flat Despite Major Price Rally

Bitcoin mining activity doesn't seem to be reacting to the recent price rally that took the asset from approximately $9,000 in early July to almost $12,000 at time of publication.

According to data from Coinmetrics, hashrate spiked around July 7 and has remained largely flat amid fluctuations to the downside.

The hashrate represents the sum total of all miners attempting to find hashes that would create new valid blocks.

There is generally a strong correlation between hashrate and price, as a higher BTC value increases the profit margins for each individual miner.

Since July, hashrate growth appears to have slowed down as the difficulty saw its first decline since early June.

While for most of July Bitcoin's price remained steady, it crept up until a dramatic rally took it to highs of $11,500 in the second half of the month.

Hashrate is sitting below all-time highs even as two weeks passed since the major leg of the rally.

During protracted rallies, hashrate tends to trail price as the supply of new miners is constrained by physical supply chains.

At the same time, the rally rendered the old S9 series of miners slightly profitable at electricity prices of $0.04, according to Asicminervalue.

As Bitmain competitors scale their operations up and old miners are gradually turned back on, it is likely that the hashrate will resume growth.