Bitcoin’s network hashrate reached an all-time high, signaling strong long-term growth potential despite recent market stagnation and liquidation of long positions.
Bitcoin BTC $108 323 24h volatility: 0.4% Market cap: $2.15 T Vol. 24h: $26.26 B has remained relatively stable over the past weekend, staying between $55,000 and $58,000. Despite the calm, traders expect increased market swings as this week comes with crucial events including key US economic data, particularly the Consumer Price Index (CPI) released ahead. Alongside this, the upcoming Trump-Harris debate is set to influence market sentiment.
The lower trading activity in BTC followed Friday’s US jobs report, which triggered the liquidation of over $220 million in long positions. This sell-off weakened momentum, leaving traders on edge as they wait for more economic signals.
Other major cryptocurrencies like Ethereum ETH $2 559 24h volatility: 0.3% Market cap: $308.90 B Vol. 24h: $16.38 B , Solana SOL $149.3 24h volatility: 1.2% Market cap: $79.99 B Vol. 24h: $4.32 B , and Tron TRX $0.29 24h volatility: 0.1% Market cap: $27.22 B Vol. 24h: $339.73 M showed minor changes of about 0.6% in the last 24 hours. However, mid-cap tokens, such as BitTorrent (BTT), experienced a notable 128% rise.
Bitcoin’s Network Security Bolsters Bullish Sentiment
Despite the market’s stagnation, experts at Presto Research see Bitcoin as deeply undervalued. Analysts Peter Chung and Min Jung pointed out that the market is overlooking a key strength of Bitcoin: its network security.
Bitcoin’s hashrate, which measures the total computing power securing the network, reached an all-time high of 679 exahashes per second (EH/s) in September 2024. This surge reflects increased mining activity, suggesting a solid foundation for long-term growth.
Chung and Jung argue that the rising hashrate signals a positive outlook. The availability of spot ETFs has placed Bitcoin in a stronger position than ever before, making it seem undervalued in their view.
This uptick in miner activity, which began in August, has often been a sign of market bottoms for Bitcoin. As miners expand operations, it shows their growing confidence in price stability. Many analysts believe this could be a catalyst for a significant rise in Bitcoin’s price.
CPI and Trump-Harris Debate Set to Shake Markets
Looking ahead, Bitcoin traders are closely watching two major events this week: August’s CPI data release on Tuesday and the Producer Price Index (PPI) figures on Wednesday. Both reports will offer key insights into the state of U.S. inflation and are likely to influence Federal Reserve policy in the coming months.
Meanwhile, the first Presidential debate between Donald Trump and Kamala Harris is adding to market jitters. Trump, who aims to turn the U.S. into a global crypto hub, might make statements that could shake both the political and crypto landscapes.
Harris’s stance is less defined, but her team is reportedly exploring policies that could boost the cryptocurrency sector. As a result, the debate’s outcome could affect investor attitudes and introduce more market swings.
Adding to this, market expert Lucy Hu from Metalpha pointed to recent weaker US payroll data, which has triggered asset sell-offs since Friday. She noted that the crypto market is likely to remain unstable as the next Federal Reserve meeting approaches.
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