Bitcoin’s hash rate continues to move in contrast with the asset’s price as it charted yet another new all-time high recently.
This comes even after the latest substantial mining difficulty increase, which was the largest in over six months.
Bitcoin Hash Rate New ATH
The hash rate is an essential metric in the BTC network as it shows its robustness based on the number of active miners and the computational devices they have plugged into it.
Generally, it declines during the summer months as many countries prohibit local miners to do their job due to high electricity demand. This was evident in the past few months, as well as the metric dropped from 250 Ehash/s in June to 170 Ehash/s in mid-July.
However, it began its recovery in the past few weeks as summer is coming to its end. In a matter of just over a month, the hash rate increased by over 50% and registered a new all-time high during the weekend of 265 Ehash/s.
While some believe that the hash rate is somewhat connected to the asset’s price and could predict upcoming moves, this hasn’t been the case for the past several months.
The hash rate has remained at predominantly high levels, aside from the brief decline mentioned above, but BTC’s price has struggled a lot. The cryptocurrency trades far below its all-time high registered in November of last year and has been unable to decisively overcome the $20,000 level for a few months.
Bitcoin Mining Difficulty Update
The mining difficulty readjusts every roughly two weeks (2,016 blocks) to ensure the network continues to operate as it’s intended. Essentially, it makes it harder for miners to do their job if there’re too many of them currently operating and vice-versa. Thus, it allows the largest blockchain to keep its block production at around 10 minutes.
During the summer hash rate correction, when many miners were offline, the mining difficulty saw several consecutive negative readjustments. However, it changed the tides shortly after and registered its largest positive one since January on August 31.
The metric is now at 30.98 T, and the next adjustment is supposed to take place in about 24 hours. As of now, BTC.com data shows that it should be another positive one, increasing the difficulty by 3%.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.