Bitcoin’s hashrate is seemingly recovering and moving towards new all-.time highs, after enduring an initial 40% drop after the block reward halving, that saw rewards on the BTC blockchain drop from 12.5 BTC to 6.25 per block.
CryptoCompare data shows that the flagship cryptocurrency’s hashrate hit an all-time high above 130 EH/s ahead of the block reward halving, and endured a 40% drop to 81 EH/s as smaller mining operations started struggling to make a profit.
As the price bitcoin kept on rising after the halving and got close to the $10,000 mark, the cryptocurrency’s hashrate started moving back up to reach a high of 120 EH/s before seemingly dipping again. It’s worth noting that daily hashrate values may periodically rise and drop significantly because of the randomness in blocks mined.
Even if the hashrate is constant, the number of blocks being mined per day varies as the mining machines solve the computational problems to find them. The mining hashrate likely bounced back as a price rise may have helped smaller mining operations become profitable again.
As CryptoGlobe reported, the price of bitcoin broke the $10,000 mark shortly after U.S. President Donald Trump finished a speech on law and order. It then dropped below the psychological $10,000 mark after a flash crash on BitMEX dragged its price all the way down to $8,600, and it has been recovering since.
John Bollinger, creator of the popular technical analysis tool Bollinger Bands, has tweeted out he believes it is time to be “cautious or short” on the price of bitcoin, believing the rise above $10,000 was a head-fake. A head-fake occurs when the price of a security moves in one direction initially, but then reverses its course and moves in the opposite direction.
Featured image via Pixabay.