Bitcoin’s price action is displaying bearish momentum. After briefly touching a high of $69,431 Monday morning, BTC quickly retreated to sub-$67,000 levels, but at least one metric suggests the king crypto still has more gas in the tank: the hash rate.
Record High Hashrate Point
The Bitcoin hashrate has hit a record-breaking level as the world’s largest crypto loiters below $70K.
The apex crypto’s hash rate has hit 769.8 exahashes per second (EH/s), according to Ycharts data. That’s the highest ever level witnessed for this metric in all of Bitcoin’s (BTC) history.
Hashrate refers to the total combined computational power used to mine and process transactions on a proof-of-work blockchain, such as Bitcoin. Bitcoin’s hashrate has increased over 10% since the April halving event when the total number of BTC produced per day was slashed in half to 450 BTC.
A high hash rate is important because it means more computing power is being used to keep Bitoin’s network secure. The more computing power utilized, the harder it is for bad actors to take control of over 50% of the Bitcoin network. It also indicates more mining activity on the network as miners expand their operations and use more machines and power to continue minting coins.
The Bitcoin mining difficulty — a measure of how easily miners can discover a block of BTC — is also set to surpass the 95.88T mark on Wednesday, setting a new historic high, and it could continue to surge further.
Bitcoin Price Explosion Imminent?
According to data from CoinGecko, Bitcoin is currently trading at $67,264, down 1.95% over the last 24 hours. The apex cryptocurrency is around 8.6% lower than its current high of $73,737, which it touched back in March, though it is up 6% over the last month.
Historical data suggests that the BTC price and hashrate are somewhat positively correlated, as both have been rising in lockstep for the better part of the last 10 years or so as crypto adoption exploded. In other words, a rising hashrate often precedes significant price movements — meaning BTC could rocket in the foreseeable future amid the increasing hashrate trend, especially as the bullish sentiment from the upcoming U.S. elections gains more momentum.
However, Bitcoin needs to flip $69,000 into support for bulls to have a chance at challenging the March lifetime highs.
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