According to data, Bitcoin mining hashrate (ATH), is nearing its record high set in April. Here’s what it may mean for the price of the crypto.
Bitcoin Mining Hashrate nears a New ATH
Based on data from the blockchain, it appears that Bitcoin’s hashrate network is close to the ATH reached in April.
The “hashrate” is an indicator that shows the total amount of computing power connected to the Bitcoin blockchain network.
The BTC blockchain allows miners to compete by solving complicated algorithms in order to handle transactions.
To achieve this, miners must have a large amount of computing power. High hashrate can be translated as a large amount of computing power, meaning that the Bitcoin network is very powerful. This helps the chain to perform more effectively and speed up.
High values for the indicator could also indicate that the network has a large number of miners (or nodes) attached to it. These values may lead to a better decentralization in the BTC network. This increases the security of blockchain against possible attacks.
A low crypto network’s hashrate can lead to poor performance as well as lower security.
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Here’s a chart showing the change in Bitcoin Hashrate value over the last year.
This indicator seems to be trending upwards for a while. Source: Blockchain.com| Source: Blockchain.com
You can see that Bitcoin seems to be heading towards an earlier ATH, which was reached in January.
When the ATH was set in April, BTC’s price also peaked then. After China’s crackdowns on mining started, the hashrate began to go down, and had collapsed by June.
The indicator’s value has been steadily rising since then. If the trend continues, a new ATH might be possible.
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Some speculated earlier that Bitcoin’s price would rise when hashrate makes a new ATH. However, since the bloodbath of November, the coin’s price has rather dwindled down.
An increasing hashrate for Bitcoin has been a bullish sign, so it may continue to be.
At the time of writing, Bitcoin’s price floats around $47.7k, down 0.5% in the last seven days. Below is a chart showing the change in Bitcoin’s price over the last five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Featured image taken from Unsplash.com. Charts from TradingView.com and Blockchain.com.