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Bitcoin Hashrate Hits New Records as BTC Surpasses $23k

Author

Jonathan Gibson

Tags

Reading time

3 mins
Last update

Author

Jonathan Gibson

Tags

Reading time

3 mins
Last update

Author

Jonathan Gibson

Tags

Reading time

3 mins
Last update

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Bitcoin (BTC) hasrate surpassed 300 Ehash/s a few days ago, setting a new record for Bitcoin’s hashrate. This shows that despite the current bear market, miners continue to be connected to the network and protect Bitcoin’s blockchain. Meanwhile, Bitcoin’s price reached $23,000 after several months below this price level. 

Bitcoin Hashrate Hits New Records 

Bitcoin hashrate hit new records amid a stronger bullish action in the crypto industry. According to data shared by Bitinfocharts, Bitcoin hashrate broke all its previous records. The positive thing about this achievement is related to the fact that after Bitcoin started to move higher in recent weeks, hashrate followed. 

This shows that there is a clear trend among miners to re-activate their mining hardware as soon as Bitcoin recovers part of the price that it lost in the last bear market. Let’s not forget that this record comes after a bear trend that started in November 2021 and continued until the beginning of the year. It is now time to understand what will happen with Bitcoin’s price and whether there will be a new move higher or a continuation of the bear trend. 

The 14-days moving average of Bitcoin’s hashrate shows the same trend. Bitcoin’s hashrate has been moving higher for many years, with some sporadic events where the trend seemed to be reversed. Since Bitcoin was created, there has been a strong trend upwards that was only affected when China decided to forbid mining operations in its country. 

When it comes to price, Bitcoin has moved higher by 11.4% in the last 7 days alone. A few weeks ago, Bitcoin was being traded below $16,600, which shows that there has been a price increase of over 35% in a very short period of time. The question is now to understand whether Bitcoin will continue to move higher and stabilize around $23,000 or if a new bear trend will push it lower. 

A higher Bitcoin price is usually linked to a stronger market for miners. Miners receive rewards for processing transactions and securing the network. These rewards become even larger in USD terms when the price of Bitcoin is higher. Despite the fact that miners receive a fixed BTC amount according to their proportion of the Bitcoin hashrate, they have to sell a portion of these coins in order to be able to run their operations. 

The higher the hashrate the more secure the Bitcoin network becomes and the more resistant it becomes to attacks from malicious parties (including governments). Now it will be time to see if the network difficulty will also move higher. Difficulty could make it more difficult for new miners to remain profitable in the current conditions, but everything will depend on the way in which the price of Bitcoin moves in the near future. The higher the price, the more profitable it becomes for miners to enter the market and start receiving BTC rewards for protecting the network.