Bitcoin is trading at its highest in over 18 months, with the price of the world’s largest cryptocurrency having risen more than 100% since the beginning of the year.

This rally has driven Bitcoin’s market cap over the $700 billion mark and the overall crypto market cap nearer to $1.5 trillion. 

Although this figure falls short of its all-time high of $3 trillion at the end of 2021, a number of crypto analysts believe Bitcoin’s recent gains could mark the start of another record-breaking streak.

Furthermore, Bitcoin’s hash rate hit an all-time high earlier this week, according to Blockchain.com data. The hash rate determines how much computing power is needed to verify transactions and generate new crypto units through mining, The Independent reports.

This indicates a robust network, with an increasing number of miners being attracted to hopes of future price gains. Indeed, substantial investment in crypto mining has been reported from state-backed and commercial ventures.

In addition, miners have been profiting from cheaper energy sources to lower their average Bitcoin production cost by 35% from $21,100 to $13,800.

“This data underscores a considerably stronger profitability in the mining sector compared to the challenges experienced throughout 2022 and part of 2023,” stated Fineqia International research analyst Matteo Greco.

In around six months’ time, Bitcoin will undergo the next halving event, which will see the number of new Bitcoins awarded to miners halved.

Halving events take place every four years and the lead-up has typically been the most profitable time for crypto investors, The Independent report goes on to add.

“Buy Bitcoin six months before a halving and sell 18 months after a halving has historically beaten ‘buy and hold’ trading strategy. The next halving is April 2024... Will this strategy work again?” said renowned crypto trader PlanB earlier in the year.

At the time of writing, the price of Bitcoin stood at $37,377.