Bitcoin mining power reaches all-time high in spite of macroeconomic concerns

Must read

Despite the total cryptocurrency market capitalization remaining below the coveted $1 trillion mark it had surpassed in early September and the price of Bitcoin (BTC) struggling to reach the $20,000 mark, the miners of the largest crypto seem to remain unconcerned.

As it happens, the mining hash rate of the flagship digital asset reached a new all-time high of 240.208 million TH/s on October 2, based on the 7-day moving average which has recorded a steady increase over the recent weeks, as revealed by the Blockchain.com data.

IMG 20221003 131307 891

Bitcoin mining hash rate based on the 7-day average. Source: Blockchain.com

Meanwhile, the BTC hash rate, which represents the computing power utilized to process transactions, began its rise in August when the price of the maiden digital asset showed indications of short-term recovery. That said, the price of Bitcoin has been struggling since, whereas its hash rate continued to climb.

Miners seeing other positive signs?

Curiously, the recent growth in Bitcoin hash rate is defying the historical trends in which it directly correlated with the decentralized finance (DeFi) asset’s price movements – dropping and increasing alongside the ebbs and flows in Bitcoin’s value.

Miners’ confidence can partially be attributed to investors abandoning fiat currencies like the euro and pound in record numbers and turning to crypto assets like Bitcoin and Ethereum (ETH) instead, leading to a three-month high in Bitcoin trading volume.

On top of that are the bullish predictions such as the one by Robert Breedlove, the founder of crypto investment firm Parallax Digital, who believes that Bitcoin stands a major chance to surpass $12 million by 2031, fuelled by the collapsing purchasing power of the dollar.

As things stand, Bitcoin is currently trading at $19,182, representing a 0.56% decline on the day, but still an improvement of 1.06% across the previous seven days.

IMG 20221003 131247 577

Bitcoin 7-day price chart. Source: CoinMarketCap

At the same time, its market cap is standing at $367.68 billion, retaining Bitcoin’s position as the largest cryptocurrency by this indicator, according CoinMarketCap data retrieved by Finbold on October 3.

Source

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Latest article