With the volatility in the crypto market, Bitcoin has reached unexpected levels this year. The crypto winter in the first half of the year has weighed on the leading crypto asset. As a result, the price of BTC has fallen by more than half since November 2021.
But despite price volatility, Bitcoin’s hash rate has rebounded since falling in mid-July. In a recent report, the BTC hashrate reached a new all-time high (ATH). This new location comes after the last increase in the mining problem.
The importance of hash rate measurement for the Bitcoin blockchain provides information about the strength of the network based on the BTC mining process. In addition, it correlates the number of active miners working on the network and their account numbers.
Many people make a connection between the value of a cryptocurrency and its hash rate for future movements. But there can be twists in some cases, as has been the case for Bitcoin over the past few weeks.
Hash rate rises amid price war.
The price of BTC has been in a war for the past few months. He can’t maintain his position at around $20K in July. However, Bitcoin’s hash rate was at a higher level during the weeks when the price was struggling.
Usually during the summer months, regulatory authorities in many countries affect mining operations. For example, because of the high demand for energy at the time, local mines are banned. Hence the BTC hash speed will slow down. This season’s record has dropped from 250 eHash/second in mid-June to 170 eHash/second.
But as the summer fades, the scale is recovering. In just a few weeks, the hash rate has risen over 50%, taking it to a new all-time high of 265 Ehash/s last weekend.
Trend in Bitcoin mining difficulty
BTC mining problem will be fixed after 2,016 blocks (two weeks). This adjustment is necessary to keep the network in proper condition. This means that the Bitcoin blockchain waits for the block production in 10 minutes.
So with the difficulty adjustment in the mining, the more people are connected to the network, the harder it will be for the miners. Conversely, when the number of miners decreases, it becomes easier to mine.
The mining problem is currently at 30.98 T, but the next correction will take place in less than 24 hours. According to BTC.com, the scale may turn positive again and show an increase of up to 3%.
As more miners went offline during the summer, the mining problem indicated more negative adjustments. But the trend reversed on August 31 to give the metric its highest positive value since January this year.
Featured image from BBC, chart from TradingView.com