Yes, there is a correlation between Bitcoin—and crypto assets in general—and hash rate. It’s more like the cause-effect scenario, a chicken and an egg comparison. Which came first? Well, we know the difficulty of the network begun at one and after the mining of the genesis block, the first 50 BTCs were released and a sent to Hal Finney, one of the first adopters of the revolutionary technology.
Well, it seems like hash rate can also be a measure of the market sentiment and at the moment, Bitcoin bulls are back meaning the demand of the coin is up, driving prices higher.
Of Prices and Hash Rate
Because of higher prices, more miners are flocking, bulwarking
the network and as such, a user notes that the network’s hash rate is up 39
percent in 2019 testing highs of 54.86 EH/s on May 2, 2019 when Bitcoin prices
surged above $6,000 in BitFinex revealing underlying sentiment for Bitcoin.
Even so, the network’s computing power is down 12 EH/s in
the last three days at 42.33 EH/s at the time of press.
Here’s what David Sapper, Chief Operating Officer of Blockbid, an Australian cryptocurrency exchange said:
“The increased hash rate means people are here for the long-term because they’re happy to just accumulate what they have, potentially even run at a loss. At the same time, they do sometimes have to clear house and dump.”
Hash Rate Drop 22 Percent in Four Days
All the same, the question in everybody’s mind is: Is this 22 percent drop an indicator of what to expect in days ahead? Or are miners switching off their mining power and channeling them to other SHA-256 networks like Bitcoin Cash or SV?…