Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Bitcoin blockchain network’s mining power has made a new all-time high record thereby indicating the high relative strength of the blockchain. With this, the Bitcoin price has surged 5% to climb above $8300 levels.
The Bitcoin hash rate has been the talk of the town and analysts are closely observing its movement. After dropping below 100 EH/s earlier this week on Monday, the Bitcoin hash rate recovered back to hit a new all-time high.
Beating all of its previous records, the Bitcoin hash rate has hit 120.7 exahashes per second (EH/s). The higher hash rate indicates the higher relative strength of the Bitcoin blockchain. It also indicates higher miner participation and more computational power invested in creating new blocks.
Besides, the difficulty of adding new blocks to the Bitcoin blockchain adjusts automatically. This is to ensure that the block times remain consistent at around 10 minutes per block.
The Bitcoin hash rate has been steadily increasing over the last few years. However, in just last one year, the hash rate has tripled moving from 40 EH/s to now at 120 EH/s. Moreover, if we consider the 2020 performance so far, the hash rate slipped below 100 EH/s only once.
But not to forget, this growth over the last year has come after a massive crypto winter of 2018. During 2018, the Bitcoin hash rate plummeted significantly causing miners to go out of business. This year of 2020 will be crucial for miners are we have some important events lined-up.
The mid-2020 is scheduled for the Bitcoin halving event wherein miners’ rewards will be reduced to half from 12.5 BTC to 6.25 BTC. There has been a lot of speculation that the Bitcoin halving event will help to catapult the Bitcoin price northwards.
Bitcoin Price Surges 5%
With the BTC hash rate hitting its record-high, the Bitcoin price has also surged 5% today climbing above $8300. At press time, the Bitcoin price is $8346 with a market cap of $151 billion.
In the last week, since the start of January 2020, the BTC price has surged 10%. With this, the Bitcoin dominance in the overall cryptocurrency market has goe above 69%.
Analysts are expecting the Bitcoin price to climb further from these levels.
– Breakout of the 47-day trading range
– No swing failure at the previous highs
– Thin air above us
More acceleration likely if we can maintain above 8K. FOMO and short capitulation has yet to kick in. Travelling quickly on the way down = easy on the way up. pic.twitter.com/uNgSkZhEsb
— RJ (@RJ_Killmex) January 7, 2020
Although we might get to see some continued volatility in the BTC price we can expect better gains ahead this year. Bitcoin ended the last year of 2019 with 100% price gains closing the year above $7000 levels.
Earlier analysts have predicted that in 2020, Bitcoin will climb above its previous all-time high of $20,000. Moreover, a few analysts also predicted some magnanimous gains of $50,000 to $100,000. Although these targets look somewhat unlikely, we can say anything with certainty looking to Bitcoin’s historical volatile behavior.
On the other hand, there have been multiple reports of the possibility of a global economic recession in 2020. Analysts are already predicting a crisis in the Dow Jones index this year. In such a scenario, it would be interesting to see if investors move their money to traditional investments like gold/bonds or they pour this money in the crypto markets.