Bitcoin [BTC]: Why a hash rate hike will favor the bears

• Another ATH of Bitcoin’s hashrate could lead to BTC’s price drop.
• The royalties have recently broken away from the S&P 500 trend.

A significant drop in Bitcoins [BTC] price could be imminent if the hashrate reaches another All-Time High (ATH), a CryptoQuant analyst revealed on 23 February. Analyst Gigisulivan, who is also a macroeconomic specialist, believed that the ATH on February 16 only gave a warning sign. Moreover, a repeat of the incident could lead to a catastrophic outcome for BTC.

Read Bitcoins [BTC] Price prediction 2023-2024

Past events are evidence

Bitcoin’s hashrate is the computational power used to mine and process BTC transactions on the Proof-of-Work (PoW) blockchain. On January 26, Gigisulivan had put one out release which explains the hashrate’s effect on the coin’s price.

He had basically explained that the investor’s expectation of bullishness in the event of a hashrate ATH was false. The analyst maintained his stance and gave examples of occasions where the metric increase resulted in the royal coin’s depreciation.

Source: CryptoQuant

According to the current state, Gigisulivan pointed out that BTC was in a critical state since ATH was registered seven days ago. The on-chain analyst cited the state of the 200-week moving average (MA), and Bitcoin’s correlation with the stock market as reasons why a price drop could happen. He noted,

“New Hashrate ATH from February 16 comes at a critical crossroads for Bitcoin, coming off the 200 Weekly MA and its first weekly deathcross, with the stock market weakening, all of this adds up to bearish sentiment building.”

Apart from that, Tethers [USDT] massive dominance in recent days has made an extra case for bears. Remember that the ban on Binance USD [BUSD] and USDC’s Probable Probe had led many investors to choose USDT as their stablecoin of choice.

For Gigisulivan, this superiority could drive BTC down to $21,500. This was because the coin seemed overvalued compared to the stock market.

Source: TradingView

BTC: Slipping away from tradition

Bitcoin has often correlated with the stock market. But another CryptoQuant publication by Quantum Economics analyst Jan Wüstenfeld opposed Gigisullivan’s perception. In accordance Wüstenfeld, BTC had separated its correlation from the S&P 500 Index (SPX) over the past 20 days.

Interestingly, the coin had also changed the reaction to news, which FOMC outcome. So, could it be that Bitcoin began to simply respond to the crypto market activities?

How much is 1,10,100 BTCs worth today?

Well, Wüstenfeld mentioned that it wasn’t the first time something like this had happened, as there was a similar incident below FTX collapse. While BTC had lost its grip on the $25,000 region, SPX followed an uptrend.

Source: CryptoQuant

It was not certain how long the state of conflict would last. However, Wüstenfeld acknowledged that it would be interesting to see, as some parts of the crypto community have even longed for the disconnect.