Bitcoin’s hash rate skyrockets with a 55% increase in 2 months

With the fluctuations in the cryptocurrency market, Bitcoin reached several unexpected levels this year. The cryptocurrency winter in the first half of the year has shaken its balance to the main crypto asset. As a result, the price of BTC dropped to more than half of its value in November 2021.

But despite the price fluctuation, Bitcoin’s hash rate has risen since its decline in mid-July. In a recent report, BTC’s hash rate hit a new all-time high (ATH). This new location came following the latest increase in mining difficulty.

The significance of the hash rate metric for the Bitcoin blockchain is that it provides information about the strength of the network based on the BTC mining process. It also correlates the number of active miners and their computational mining equipment working on the network.

Many people make a link between the price of a cryptocurrency and its hash rate for future moves. But in some cases there may be twists and turns, as we have seen in recent weeks for Bitcoin.

The hash rate rises amid the price struggle

The price of BTC has been in battle for the past few months. In July, he barely managed to hold his position around the $ 20,000 region. However, Bitcoin’s hash rate was at higher levels in the weeks the price was struggling.

Usually, during the summer months, the regulators of different countries influence the mining activities. For example, they ban local miners due to increased energy demand during the period. Hence, the BTC hash rate will decrease. The record for this year’s season indicated a drop to 170 Ehash / s in mid-July from its June value of 250 Ehash / s.

READ ALSO :   Bitcoin mining company Bitfarms starts Megafarm operations in Argentina

But as summer wears off, the metric is picking up. In a few weeks, the hash rate increased by more than 50%, taking it to a new all-time high of 265 Ehash / s last weekend.

Bitcoin's hash rate skyrockets with a 55% increase in 2 months
Source: BitInfoCharts

Bitcoin mining difficulty trend

BTC’s mining difficulty readjusts after every 2,016 blocks (two weeks). This readjustment is necessary to keep the mesh in the correct position. This means that the Bitcoin blockchain will keep producing its block in just 10 minutes.

Hence, by adjusting the mining difficulty, it will be difficult for miners to operate when there are many of them connected to the network. Conversely, it will be easier to mine when the number of miners decreases.

The mining difficulty is currently at 30.98 T, while the subsequent readjustment will occur in less than 24 hours. According to data from BTC.com, the metric could be positive again and show an increase of up to 3%.

Bitcoin's hash rate skyrockets with a 55% increase in 2 months
Bitcoin drops significantly there BTCUSDT on TradingView.com

With many miners offline over the summer, the mining difficulty indicated more negative readjustments. But the trend changed on August 31 to provide the highest positive value for the metric since January of this year.

Featured image from BBC, chart from TradingView.com

Tinggalkan komentar