According to Golsnod data, Bitcoin hashrate increase It most likely marks the end of crypto winter and the beginning ascending cycle New will be the biggest cryptocurrency in the market.
Bitcoin network hash rate has set a new record. This issue is most likely a sign of the fall in the price of the top digital currencies in the market.
Read more: The future and prediction of Bitcoin price in 2022
Bitcoin hashrate increase
Bitcoin’s hash rate is at its highest this week 242 ppm Receipt. The network’s hash rate had dropped to 193 exahs per second in July. BTC price and hash rate have a historical correlation. This indicates that the increase in Bitcoin’s hash rate will be the beginning of a new upward trend.
Bitcoin’s hashrate has recovered from its summer slump. This indicator fell in 2011, 2018 and 2021 at the same time as the price of BTC, indicating that Bitcoin may have bottomed out.
According to Glassnode data, BTC hash rate In the last seven days, it has reached its highest level of 242 exams per second. The new Bitcoin hash rate slump is good news for investors of the largest cryptocurrency in the market. The rate of hash rate and the decrease in the price of Bitcoin have been closely related to each other.
Bitcoin is secured through a proof-of-work (PoW) mechanism, relying on network miners to generate new blocks and add them to the blockchain.
Relationship between hash rate and BTC price
Hash rate shows the amount of computing power in solving equations. 242 fps represents a huge amount of processing capacity. Glassnod claims that the current state of the network is equivalent to each of the 7.853 billion people on Earth being able to do 30 billion hashes per second.
Bitcoin hit a record high of 230 exahes per second in early June. BTC price drop from $28,000 to 18 thousand dollars It led to a decrease in the hash rate to 193 exahes per second. This is the most important decrease in the hash rate of the network since the summer of 2021. At the time, China’s ban on crypto mining forced institutional BTC miners to shut down their machines and scatter around the world.
Bitcoin hash rate recovery is significant, as this metric is often compared with Bitcoin price performance And especially the cycles of price movements of this cryptocurrency are relevant. In 2011, when the price of Bitcoin went from $28 to $2.25 in three years, the network’s hash rate also dropped from 14 trillion hashes per second to 7 trillion hashes per second. The remarkable thing is that the BTC hash rate and the price of this cryptocurrency reached the bottom at the same time.
What is the Bitcoin Ribbon Hash Index?
A similar trend occurred in 2018. Bitcoin reached its all-time low of $3,217 on December 15. Bitcoin’s hash rate also fell to 34 exahes per second at the same time. In the summer of 2021, 20 days before the price of Bitcoin reached $30,000, the hash rate returned from 86 exahes per second and reached its highest level weeks later.
The Bitcoin Ribbon hash index is also a sign of possibility Bitcoin price recovery is showing. The Hash Ribbons indicator is obtained from the ratio between the 30-day simple moving average of the hash rate and its 60-day moving average. Over the past two years, the 30-day moving average above the 60-day moving average has repeatedly signaled the beginning of an uptrend. The two averages collided again on August 20.
Bitcoin is currently trading at $20,086. The market’s largest cryptocurrency gained 2.9% in the last 24 hours. Bitcoin has traded between $18,310 and $20,380 since September 13, according to data from CoinGecko. BTC is currently more than 70% away from its November 2021 peak of $69,000.
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