Hashrate for Bitcoin has reached a new high. How Does That Affect Bitcoin?

    Key Takeaways

    • Bitcoin’s hashrate made a new all-time high of 242 exahashes per second this week.
    • The network’s hashrate fell to 193 exahash per second in July.
    • Price and hashrate have historically been correlated, indicating that the recent rise could signal the beginning of a new uptrend.

    Bitcoin’s hashrate has recovered from its summer slump. The top crypto network’s hashrate bottomed at around the same time as its price did in 2011, 2018, and 2021, indicating that Bitcoin may have found a floor. 

    Bitcoin’s Hashrate Posts New High

    Bitcoin’s hashrate is rising. 

    According to data from Glassnode, the top cryptocurrency network’s hashrate reached a new all-time high of 242 exahash per second over the past seven days. This could be good news for Bitcoin investors, as hashrate and price bottoms have historically been largely correlated. 

    Bitcoin is secured by a Proof-of-Work consensus mechanism, relying on miners to solve highly complex mathematical equations to produce new blocks and add them to the blockchain. The hashrate indicates the amount of computational power currently involved in resolving these equations. 242 exahash per second represents an enormous amount of processing capacity; Glassnode claims it’s the equivalent of having “all 7.753 billion people on Earth each completing a [hash calculation] approximately 30 billion times every second.”

    Bitcoin previously hit a record hashrate of almost 230 exahash per second in early June. BTC’s subsequent drop in price from about $28,000 to $18,000 led to a hashrate decline to just over 193 exahash per second. It marked the network’s most significant drop in hashrate since the summer of 2021 when China’s ban on crypto mining forced institutional Bitcoin miners to turn off their machines and relocate worldwide.

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