GlossaryBTC / energy
BTC / energy
The Bitcoin price per unit of network hashrate, in USD per EH/s, read against its own yearly average. The curve measures how much price each unit of computing power stands for: it rises when the price grows faster than the hashrate, and falls when hashrate grows into a price that does not keep up.
How to read it
- Above the yearly average: Each unit of computing power “earns” more price than on average over the last year. Mining becomes more lucrative, and new machines usually follow with a delay.
- Below the yearly average: The hashrate has outrun the price, and miners' margins are shrinking.
- Margins under pressure: Less than half the yearly average. Such phases often go along with unprofitable machines being switched off.
The coloring of the entire history uses today's yearly average; the gray line shows where it stood earlier.
Limitations
- Reads the chart as the BTC price: The study divides your chart's closing price by the hashrate. It is therefore only available for Bitcoin.
- Frequency: The hashrate comes as a daily value; the study is meant for daily to weekly charts.
- Raw hashrate: The daily value fluctuates strongly; the smoothing over 7 candles only takes out the coarsest noise.