HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Hash Rate Increase Shows Why Miners Are Loading Up On Bitcoin

Mining 2020/04/12 11:51 by Steve Muchoki
Hash Rate Increase Shows Why Miners Are Loading Up On Bitcoin

As the Bitcoin halving fast approaches, miners are rushing to acquire as most coins as possible before the reward rate is slashed by half, in less than a month. It’s a conclusion reached after Bitcoin’s mining hash rate drastically surged in the past few days.

Bitcoin price rallied last week to fix slightly above $7,400, however, at the end of the week, all the profits were shed in a single drop. The asset dropped by over $600 on Friday, whereby at the time of reporting it was trading at $6,842.

It has been noted that the mining hash rate moves directly proportional to the market price. Reasons because mining gets expensive when the price drops and becomes profitable when the price is on the rise and promising to thrive.

The hash rate has surged over 12% since mid-march, which can explain the recent price rally. The increase in hash rate has attracted the attention of analysts, the likes of ‘planB’ from twitter, who stated that miners are pumping up hash rate. He noted that the next difficulty adjustment will be up soon. His tweet attracted over 1k likes with a lot of mixed reactions from his followers.

Bitcoin Price in Relation To May’s Halving

We are at a crossroad, where the next few months are going to be decisive for the crypto assets. A lot of speculations are for Bitcoin skyrocketing to hit and surpass the all-time high of $20k.

Bitcoin’s market dominance remains huge, standing at 64.2% at the time of reporting. With a market cap of over $125 billion and a daily volume at $29 billion, it’s all an indicator the future is bright for the asset.

As with the past halving events, where the price rallied after the event, it is also being anticipated that the price will skyrocket soon. However, with the ongoing coronavirus crisis, investors are in a panic, resulting in staying out of the volatile market.

Bitcoin Miners, Hash Rate and Future

With a finite end to the block reward, there is only a limited timeline into which the Bitcoin miners can shape the future market price. However, on the short term basis, the hash rate is expected to increase in volatility, before and after the halving event.

Most Bitcoin miners might end up ditching the activity since it will not be cost-effective due to the high competition for the rare commodity.

0 Like(s)



You should also read...

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
Mining 20/02/20 11:05 by Brenda Ngari
How Texas Could Soon Become The Next Bitcoin Mining Hub
After a multi-year downtrend, bitcoin is finally showing signs of reversing the bearish trend. But, even with the gloomy prices, the bitcoin mining industry has been stronger than ever. More mining c...
Read More
Mining 06/05/20 01:00 by Cole Petersen
Bitcoin Miners Move to Protect Their Profitability as Halving Looms
Bitcoin’s long-awaited mining rewards halving is now only a mere six days away, and investors are on the edge of their seats as they wait to see what implications this may have on Bitcoin’s price ...
Read More
Mining 22/04/21 00:01 by anifowosheibrahim
Decline In Bitcoin Hashrate Causes Miners To Earn $16.7 million In 24 Hours
On April 15, a widespread power outage in North China led to a sharp decline in the Bitcoin hash rate. Because major mining farms are located in China, there was a 20% corresponding decline in hash ra...
Read More