Bitcoin's hash rate has turned back up and is getting back near the highs
So much for miner capitulation like many of the latest news articles would have you believe.
Hash rate seems very much tied to price action right now.
Any kind of positive price action and it goes back up, negative price action and it turns south.
Check out the latest graph:
(Source:
)https://twitter.com/hodlonaut/status/1203966918060912644
- hodlonaut
As you can see, we have now turned back up and are only a hop skip and a jump away from the the all time highs.
One thing to take note of is the fact that there was also a slightly difficultly adjustment DOWN within the past few days, that may also play a role in why the hash rate is going back up again.
https://bitinfocharts.com/comparison/bitcoin-difficulty.html#3m
Much ado about nothing?
People have been taking note of the declining hash rate for weeks now.
Mostly talking about how it was likely miners capitulating, throwing in the towel as prices drifted ever lower.
Their capitulation adding to the sell pressure and going to take prices to extremely low levels.
It appears this $7k-$7.5K is a very sensitive area as it relates to miners.
If we drift to the bottom of that range or go lower, miners are being forced to shut off the machines.
However, now at the higher end of that range (and above it) like we've been for the past few days, the machines appear to get turned back on ( though remember there was also a sight difficulty adjustment DOWN that likely played a role as well).
Either way, zooming out a bit and looking at the higher lows in hash rate, it still looks like there was nothing to worry about:
(Source: https://beincrypto.com/bitcoin-hash-rate-defies-miner-capitulation-prophecy/)
We have been seeing higher lows basically the whole time.
A small sideways breather is to be expected.
The overall trend has been overwhelmingly, 'up'.
It will be interesting to see what happens to the hash rate once this next halving takes place
If miners are having trouble keeping the machines going at this price point with the current block reward, what are they going to do when that reward gets cut in half?
They either need a price of 2x higher ($14k), a dramatic drop in difficulty, or they may be forced to shut down.
Interesting times we are in.
The next 5 months should be very interesting.
Stay informed my friends.
-Doc