Bitcoin Hash Rate Soars Amid 55% Rise In 2 Months
With the fluctuations in the crypto market, Bitcoin has been at various unexpected levels this year. The crypto winter in the first half of the year gave the leading crypto asset a blow out of balance. As a result, BTC’s price fell to over half of its November 2021 value.
However, despite the price swings, the Bitcoin hash rate has been moving upwards since the mid-July drop. In a recent report, the BTC hash rate has reached a new all-time high (ATH). This new position came after the recent increase in mining difficulty.
The importance of the hash rate metric for the Bitcoin blockchain is that it provides information about the strength of the network based on the BTC mining process. Additionally, it correlates the number of active miners and their computational mining rigs working on the network.
Many people make a link between the price of a cryptocurrency and the hashrate of future moves. But there can be reversals in some cases, as seen in recent weeks for Bitcoin.
The hash rate gets higher in the middle of the price match
The price of BTC has been in a struggle for the past few months. It could barely maintain its position around the $20K region in July. However, the Bitcoin hash rate has been at higher levels during the weeks that the price struggled.
Usually, during the summer months, the regulatory authorities of several countries affect the mining operations. For example, they ban the local miners due to higher energy needs during the period. Therefore, the BTC hash rate will decrease. The record for this year’s season indicated a drop to 170 Ehash/si in mid-July from the June value of 250 Ehash/s.
But as summer fades, the calculation recovers. In the space of a few weeks, the hash rate has risen by more than 50%, taking it to a new all-time high of 265 Ehash/s last weekend.
Trend in Bitcoin Mining
BTC mining difficulty is adjusted every 2,016 blocks (two weeks). This adjustment is necessary to keep the network in the correct position. This means that the Bitcoin blockchain will sustain the production of its block in just 10 minutes.
Therefore, through the adjustment of mining difficulties, it will be difficult for miners to operate when there are many of them connected to the network. Conversely, it will be easier to mine when the number of miners decreases.
The mining difficulty is currently at 30.98 T, while the subsequent changeover will occur in less than 24 hours. According to BTC.com data, the calculation could be positive again and show up to 3% increase.
When many miners were offline during the summer, the mining difficulties indicated several negative adjustments. But the trend reversed on August 31 to provide the highest positive value for the metric since January of this year.
Featured image from BBC, chart from TradingView.com
