Bitcoin Network Hashrate Explodes to New ATH but BTC Corrects Under $42,000

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by Bhushan Akolkar · 3 min read
Bitcoin Network Hashrate Explodes to New ATH but BTC Corrects Under $42,000
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The Bitcoin network hashrate has touched a new all-time high registering a 31% jump in a single day. This suggests higher miner participation and the growing security of the Bitcoin blockchain.

After a healthy rally to $45,000 last week, Bitcoin has been moving sideways and continues to remain under pressure. However, the Bitcoin network registers yet another milestone when it comes to the network hashrate.

Bitcoin Network Hashrate Updated Its ATH

Last Saturday, February 12, the Bitcoin network hashrate surged to an all-time high of 248.11M TH/s. The Bitcoin hashrate defines the computational power to verify transactions and add new blocks to the Bitcoin blockchain.

A higher hashrate means growing participation from Bitcoin miners and further decentralization of the bitcoin ecosystem. furthermore, the recent surge in Bitcoin mining hashrate will ensure additional network security against external attacks.

The more interesting part was that the Bitcoin network witnessed a 31% jump in the hashrate in a single day. The BTC hashrate surged from 188.40 EH/s to 248.11 EH/s. If we look at the one-year chart, the Bitcoin network hashrate surged by more than 54%.

Last year was a year of major volatility for the Bitcoin miners. After China announced its crypto mining ban in May 2021, the Bitcoin network hashrate collapsed by more than 50% within two months. However, since July, the BTC hashrate has been on the recovery and has been constantly moving upward. It has recovered from the May 2021 fall and has been inching even higher.

This recovery came as miners fleed in big numbers from China to other countries, especially the United States. The US now accounts for the largest share in the Bitcoin mining activities and controls at least 35.4% of the global BTC hashrate.

Bitcoin Corrects Under $42,000

As said, Bitcoin has been moving sideways ever since the US announced its inflation data last Thursday. As of press time, Bitcoin is trading at $41,954 levels with a market cap of $795 billion.

With today’s correction, Bitcoin has given a breakdown under its 50-day moving average which could lead to further declines. Furthermore, on-chain data provider Santiment notes that the euphoria surrounding the Bitcoin price recovery as an indication that the FOMO was kicking in. It notes:

Bitcoin’s crowd sentiment has remained positive this week, and this is likely contributing to the decline it & #altcoins have seen to end the week. We will be looking for a bit of crowd #FUD as a signal that bounces will happen heading into next week.

On the other hand, other geopolitical factors are also putting up pressure on equity and crypto. The recent Russia-Ukraine war tensions are one of the reasons behind it.

Bitcoin News, Blockchain News, Cryptocurrency News, News
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