Bitcoin has achieved a remarkable feat as its network hashrate has surged to an unprecedented milestone of 1.046 zettahashes per second, representing the highest level of security in the cryptocurrency’s 16-year journey.
Source: Bitcoin Magazine
This new hash rate record comes at a pivotal moment, with around 93.3% of Bitcoin’s total cap of 21 million coins already mined. Due to the halving mechanism that halves mining rewards every four years, only 1.4 million BTC will remain to be mined over the next century.
The situation gains further significance as 126 publicly traded companies are now holding Bitcoin in their corporate treasuries. Collectively, these firms possess 819,857 BTC, equating to approximately 3.9% of Bitcoin’s total supply.
Source: BitcoinTreasuriesNet
In tandem, mining difficulty has escalated by 6.81%, reaching an all-time high of 121.51 trillion. This rise has resulted in a fiercely competitive landscape, prompting miners to liquidate substantial portions of their holdings in response to the declining revenues post-halving.
Mining Economics Under Pressure Despite Network Strength
The precise mathematical structure of Bitcoin’s supply dynamics fosters a unique scarcity that intensifies with each halving event. The next halving, anticipated in April 2024, will reduce block rewards from 6.25 to 3.125 BTC, compelling miners to compete for diminishing rewards even as the hash rate continues its upward trajectory.
This phenomenon of “engineered scarcity” becomes increasingly apparent when considering that an estimated 3.0 to 3.8 million BTC, or roughly 14% to 18% of total supply, are permanently lost due to forgotten passwords, destroyed hard drives, and inactive addresses, including Satoshi Nakamoto’s wallet, which holds over 1.1 million BTC.
The interplay of capped supply, irretrievable losses, and progressively decreasing issuance fosters what analysts refer to as “hardening scarcity.” This suggests that Bitcoin’s effective circulating supply may be closer to 16 to 17 million coins rather than the total cap of 21 million, in stark contrast to traditional assets like gold, which remain fully recoverable and reusable.
In March 2025, miner revenues saw a drastic 50% reduction compared to the previous year, dropping to about $1.2 billion, driven by a hash price that plummeted to just $44.20 per petahash per second—more than an 11% decline since early March.
This revenue decline has prompted substantial changes in behavior among mining firms, with 15 publicly traded mining companies disposing of over 40% of their newly mined Bitcoin in March alone.
Despite this selling pressure, Bitcoin’s network has demonstrated impressive resilience. It’s important to note that this resilience is largely due to Bitcoin’s self-correcting mechanism that adjusts mining difficulty every 2,016 blocks to maintain 10-minute block intervals, thereby ensuring network continuity even as less efficient miners exit.
Technical Analysis Points to Bullish Momentum Despite Short-Term Volatility
A detailed examination of technical indicators across various timeframes suggests Bitcoin is set for sustained upward movement, despite its current consolidation around the $106,927 mark.
The three-year hash rate correlation chart indicates a strong relationship between network security and price appreciation, with both metrics recovering symmetrically from the lows of the crypto winter, which saw prices around $20,000 and hash rates between 200 to 300 billion hashes per second, to present heights exceeding $106,000 and over 890 billion hashes per second.
The exponential growth in hash rate projected for 2024 and into 2025 aligns with Bitcoin’s ambition to reach six-figure valuations, creating a beneficial cycle where enhanced computational power not only secures the network but also bolsters investor confidence.
Short-term technical analysis reflects Bitcoin consolidating within a constructive range, with critical resistance levels identified at $108,026, $110,321, and $111,870. The dynamic support from the 25-period exponential moving average stands at $107,935.
Volume profile analysis indicates robust accumulation zones, particularly with significant trading volume occurring between the $105,000 and $107,000 range, establishing it as a strong value area.
The profitability indicator, currently at 60.92%, suggests that recent buyers remain in profit, typically indicating either a continuation of upward movement or a healthy consolidation phase.
The descending trendline, which has been serving as dynamic resistance, appears to be breaking down, a development historically associated with bullish momentum.
Combined with Fibonacci extension levels and golden cross formations—where shorter moving averages intersect above longer ones—the current technical structure supports optimistic projections towards the $111,870 level.
Should Bitcoin break through these barriers, it may pave the way for price targets in the range of $115,000 to $120,000 in the near future, contingent on maintaining support above the crucial $105,000-$107,000 value area.
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