In fact, the network's hash rate (a measure of computing power) peaked at around 414 TH/s earlier this month, according to Blockchain.com.
That's a jump of more than 60% year-to-date.
Analysts at Bitfinex argue that Bitcoin's growing problems are impacting price growth.
"Bitcoin's increasing difficulty may indicate that miners believe that the current price indicates that the current price of Bitcoin has a bearish deviation from the true value of Bitcoin," exchange analysts told CryptoNews.
"Miners can be confident that the price of Bitcoin will eventually recover, as it can be seen as a downward deviation from its true value... Therefore, it can be very profitable for them to put more resources into Bitcoin at this price invest." :
Miners are the main owners of the Bitcoin supply, and if they think the price will rise, it can reduce the supply of a large part of the Bitcoin market.
Bitcoin (BTC) is currently down more than 10% through the end of August, its weakest month of the year so far.
The cryptocurrency, which last hovered near $26,000, has come under pressure this month from 1) a macroeconomic slowdown amid rising U.S. yields and falling U.S. stock prices, and 2) a technical selloff toward a 2023 uptrend and a break below the previous 200 DMA…
The cryptocurrency pared its gains in June/early July amid optimism over the possible approval of Bitcoin ETFs later this year/early 2024.
But many believe that Bitcoin prices will not last long at depressed levels; Not only will ETF approvals drive institutional adoption in 2024, but should Bitcoin halve (a historically bullish catalyst) and Fed rate hikes. Tapering cycles also seem inevitable (probably in the second half of 2024).
Bitcoin usually reaches new all-time highs within a year of a halving (the next one is next April).
Since this would represent a profit of around 3 times the current price level, it is perhaps not surprising that Bitcoin miners are doubling their holdings and investments.