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Bitcoin hash rate hit its all-time high and set a new record. Meanwhile, BTC price came back to the $9,000 price level with the bulls showing their strength over the bears.
Bitcoin hash rate has set an all-time high after surpassing the previous set record of 150,000 PH/S. This is according to data from Coin Dance, which gives monthly feed on harsh rate. This coincided with the sudden recovery of BTC price to hit $9,000 after days of losing.
If the price continues pushing upwards, it shows there was a high number of investors in the dip who maintained their position and in return increased the market cap. At the time of writing, the market cap stood at $166.58 billion, with a 24-hour change at +4.38%.
Hash rate is basically the speed at which mining machines find blocks via complex computation algorithms. Hash rate affects miners’ profits and also a key factor in ensuring system security. The data from Coin Dance shows that the hash rate for Bitcoin has been rising consistently despite the fluctuating price in BTC.
Bitcoin price and most altcoins have recovered as the week comes to an end amid market chaos and coronavirus spread. BTC price hit a strong support level at around $8,600 and most derivatives led by BTC/USD formed what seems like a head-and-shoulder on the higher time frame.
Having defied the downtrend at the end of the week, it will be very interesting to watch how the crypto market behaves over the weekend. In the past few weekends, huge movements have taken place during the weekends only to be corrected in the first few days of the week.
As the price pushes above $9,000, crypto enthusiasts and investors are excited and their hopes rejuvenated once more. Short term investors got hit most during the last week’s correction, however, long term investors continue holding and adding to their stock.
Hash Rate and Bitcoin Future
Bitcoin future is being affected by many factors in the market. Understanding the dynamism of the crypto space will give you a rough idea that the hash rate is not permanent in the Bitcoin future. The final supply of Bitcoin is set at 21 million and the end also predetermined. With the halving approaching fast, the current reward rate will drop from 12.5 to 6.25, hence making it difficult for the miners to remain afloat in the business.
Hash rate and Bitcoin price in the future might be two independent factors as the mining process will come to an end. However, in the short term, the market price seems to be slightly affected by the harsh rate although not in a significant manner.
As the hash rate increases, the confidence in the crypto asset increases due to the high numbers of validators working round the clock.