Source: Tradingview.com
Bitcoin has clocked an all-time high in mining power. One measure of Bitcoin's intrinsic value is its energy consumption. That's because network security on Bitcoin is founded on the energy cost paid by miners as a precondition to being allowed to sign a block. The higher the economic value transferred on the network, the higher the energy cost of mining must be for the transfers to be secure.
There is no sign of miner capitulation whatsoever following the mining reward halving event in May. There already was a small dip in mining power post the March 12 crash. But now mining power is clearly rising again. There is also a longer term uptrend that is fully intact.
It's hard to say how this will affect price action, however. The growth of mining power is bullish in itself but lately the price of Bitcoin has been tied to S&P 500 to a substantial degree. I suspect the real economy will take a hit because of the second wave of the corona virus which may temporarily hit the stock market hard but central banks will massively increase QE keeping the stock market afloat and possibly rising by the end of the year. This sets the conditions ripe for a Bitcoin break out to the upside in the final quarter of this year.
