Max Keiser Predicts Bitcoin Price Rise as Hashrate Hits New All-Time High

  • Bitcoin's hash rate hit an all-time high on Aug. 19
  • Some analysts predict hash rate to be a bullish signal, with a BTC price increase to follow. 

The hashrate for bitcoin broke its all-time high record on Aug. 19, which has led Max Keiser to predict that a price increase will follow. 

Bitcoin Hash Rate

For blockchain-based projects like bitcoin, a higher hashrate means that the network is more secure, further driving investor confidence in the product. It also gives a snapshot of the amount of ‘labor’ being contributed to bitcoin, which creates more competition for miners and shows they're betting on the cryptocurrency, as mining is resource intensive and has singiifcant energy costs. 

Earlier in the month, crypto analyst and bitcoin bull Max Keiser posted a tweet that bitcoin price “follows hashrate,” and that hashing has been on a bullish trend for nine years. 

Increased hashing power can indicate market confidence, but it also creates higher operating costs for miners obtaining block rewards. The prevailing theory has been that increased competition for BTC drives up value inherently, as miners are forced to sell at a higher price to cover costs. 

Not everyone agrees that the “Labor Theory of Value,” applies to bitcoin, but Keiser is adamant that hashing is a bullish indicator. 

The price of BTC jumped more than 5% on Aug. 19 after trending downward for a week, after a 'Fear and Greed Index' flashed a buying signal after pointing toward extreme fear.