According to reports from analytics firm Glasnode, the average Bitcoin Hashrate (1 day Moving Average) has reached a new all-time high. This news comes a full 4 months after the previous all-time high on Halving Day on May 11th. In connection with the price of Bitcoin, it can be seen that the miners are not particularly impressed by the price slump of the last few days and remain optimistic.
The hashrate measures the processing power of the Bitcoin blockchain. To ensure the integrity of the decentralized system, complex mathematical calculations must be carried out quickly. When BTC is mined, blocks of verified transactions are re-hashed and added to the blockchain.
Find out more about the influence of the increase in Bitcoin hashrate on the price of the cryptocurrency and be the first to read the most important business news of the day with the Born2Invest mobile app.
What does this mean for the Bitcoin course?
When the hashrate of Bitcoin increases, there is always talk of whether or not an increase in the Bitcoin price will follow. That is because it is expected that miners will stick to the BTC they have already mined when the hashrate increases, rather than promoting new BTC through the costly mining. This in turn can reduce the supply of BTC, as miners primarily increase the supply steadily. A shortage of supply could therefore result in an increase in the price of Bitcoin. At least that’s the theory. However, this relationship is not always obvious in practice. Data on BitInfoCharts showed that the price of Bitcoin can rise and fall with such changes in the hash rate.
The bottom line at this point is that neither the technical chart analysis nor this on-chain data give a clear indication of the direction in which the Bitcoin course could turn next. Such times of uncertainty naturally also offer good opportunities for experienced traders.
Bitcoin hashrate reaches 156 EX/s
According to a graph published by analytics firm Glassnode, the average Bitcoin hashrate (1-day average) has now reached a new all-time high of 156 EX/s. The previous all-time high was reached 4 months ago on May 11th, the day of the Halving
At that time, the average Bitcoin hashrate increased to 152 EX/s, as indicated by Glassnode. The total BTC hashrate then rose to 121 EX/s and then collapsed to 90 EX/s during the halving process.
The current increase in average Bitcoin hashrate is taking place despite the recent Bitcoin price decline from $12,000 to $9,900. However, the king of cryptocurrencies has managed to cross the $10,000 mark again and is now doing its best to stay above this support line.
A positive sign for BTC
The news about the new all-time high of Bitcoin Hashrate is positive for BTC in two ways. First, the halving was only 4 months ago. The fast recovery of the hashrate is good for the security of the network. On the other hand, the increase shows the optimism of the miners for higher Bitcoin prices in the future. Also the well-known analyst PlanB finds the new all-time high and the adjustment of the difficulty upward positive.
The fact that this is a good development for BTC is also confirmed by the chart that CoinMetrics has published on its Twitter page, which shows the CMBI Bitcoin Hashrate Index. The speed of blockchain production is an indicator of a healthy network. In addition, a high Bitcoin hashrate provides a greater chance of surviving 51 percent attacks.
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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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