The recent downturn in the hashrate has not yet affected the price of Bitcoin.
Bitcoin’s hashrate (BTC) is currently experiencing a prolonged downturn, but this is no cause for concern for Garrick Hileman, Blockchain.com’s lead market researcher.
The crypto company Blockchain.com was founded in 2011 by former employees of the crypto exchange Coinbase. The website was one of the first Bitcoin analysis portals, which later expanded its scope of services to include its own wallet, crypto exchange and crypto-lending. As one of the pioneers in the industry, the portal also established the term „hash rate“, which is often used today as it describes an important key figure for crypto currencies. This expresses the computing power available in a block chain network. The original definition is that the hash rate „describes the number of terahashes per second that the Bitcoin network performs“.
It is not unusual for the hashrate of Bitcoin to fluctuate. This year, for example, it fell to an interim low of 76 million TH/s on 25 March, before climbing to a new record high shortly after Bitcoin’s halving in May. This high again ended on 25 September at a high of 161 million TH/s.
However, just under a month later the trend reversed, with the hashrate reaching only 95 million TH/s on 27 October. The exact reason for this is unknown, although experts suspect that this could be related to the end of the rainy season in China, which forces many miners in the region to relocate and temporarily suspend their operations.
In an interview with Cointelegraph, Hileman explains that he does not see this downturn as a cause for concern:
„The hashrate is still significantly higher than after the halving in May, so there is no reason for me to worry. This is still an interesting development, but since the halving we have seen other downturns that were similar. It’s probably just pure coincidence and not that bad, but we should observe it anyway.“
The hashrate could improve again in the last days to 107 million TH/s. Compared to the beginning of the year, there is nevertheless a slight minus, as the hashrate started the new year with a value of 111 million TH/s. Although the price and the hashrate have been closely correlated in the past, the recent decline in the hashrate has not yet had a negative impact on the price of Bitcoin.