HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Bitcoin Hashrate Drops Significantly Despite Booming Price

Mining 2020/05/14 23:05 by Ponvang Bulus
Bitcoin Hashrate Drops Significantly Despite Booming Price

Bitcoin hashrate has experienced a major drop of 40.83 million just a few days after the third halving. This is in spite of the rising price of the cryptocurrency which has gained 5.68% in the last 24 hours. According to data from blockchain.com, the hashrate crashed from over 136 million as of May 10 to just over 95 million on the 12th of May, the day of the halving, and has not recovered since then.

Price, on the other hand, has risen from under $9,000 as of the halving to over $9,500 at the time of reporting. This is coming on the heels of a report by Okex which suggests that bullish sentiments on Bitcoin were returning after the eventful third halving.

According to the report, the bullish sentiment is coming up despite a drop in Bitcoin Open Interest. It also says that the tightening trading range of the number one currency is a good sign of positive sentiment although more selling pressure is bound to mount in the coming weeks.

The price behaviour is however surprising since the hashrate and price of Bitcoin are strongly correlated historically. In 2017 for instance, the level of correlation was over 91%, meaning hashrate and price are usually expected to go in the same direction. The price of the asset did not experience any spectacular move prior to and after the halving, but is doing better than the hashrate.

This may be due to the fact that some less efficient miners may be backing out as a result of the 50% cut in block rewards. More of such miners are likely to leave if significant price gains are not seen in the short term, so the hashrate may continue to suffer.

Meanwhile, the price is expected to go even higher within the next year as has been the trend with the previous two halvings. The 2017 all-time high of nearly $20,000 came after the 2016 halving, so the crypto community is wondering if a new all-time high is also on the horizon following this year’s halving. 

0 Like(s)



You should also read...

Bitcoin 16/11/19 15:36 by John Kiguru
Historic Pattern And Bitcoin Difficulty Adjustment Suggest Huge Bull Run In Coming Weeks
In the last two years, the months of November and December have been key to the market. Back in 2017, we saw the crypto market rally hard and reach all-time highs. Last year, the mood was different as...
Read More
Other 28/11/19 01:30 by Jamie Redman
As Halving Interest Grows, Spectators Discuss Miner Hoards and Capitulation
Recently, cryptocurrency advocates have been discussing the upcoming halvings set to happen on the BTC and BCH blockchains in six months or less. Since crypto prices have been heading southbound, the ...
Read More
Mining 10/12/19 02:30 by Jamie Redman
Bitcoin Mining Operations Offer New Strategies Before Reward Reduction
As the reward halving approaches, bitcoin miners are preparing new strategies so customers can reap the most profits from their hashrate services. On December 3, the mining operation Poolin introduced...
Read More
Altcoins 13/12/19 00:00 by Tony Spilotro
Litecoin Lights Path To Crypto Market Bottom, Halving Nothing but Hype
Litecoin, the silver to Bitcoin’s digital gold, is often a leading indicator for the rest of the cryptocurrency market. However, if Bitcoin and the rest of the crypto market continues to follow Lite...
Read More
Mining 17/12/19 11:02 by Joseph Young
Don’t Long Bitcoin Now Says Investor as Miner Capitulation Reaches Day 27
The bitcoin price has fallen by 50 percent since July from $13,900 to sub-$6,900. The steep drop caused mining to be less profitable, causing small miners to sell-off. Bad idea to long dropping bitcoi...
Read More