Bitcoin Hash Rate hits new all-time highs, Bulls grappling with key 42.5k level.
- Hashrate Reaches New ATH
- Intel Chips to Increase Mining Capacity
- Bulls Try to Close Weekly Candle Above Key 42.5k Level
Hashrate Reaches New ATH
Bitcoin’s hash rate, which is the aggregate computational power used to mine new coins and secure the network, has hit an all-time high of 248.11M TH/s on Saturday. This is a key on-chain metric, and usually indicates bullishness. High hash rates mean that miners clearly see an economic incentive to continue spinning up more mining rigs to earn bitcoin.
The hashrate jumped over 31% in just one day, something not often seen. As bitcoin becomes more and more prevalent and used globally, the hash rate will only continue to increase. So why the spike in the hash rate? One reason could very well be that Russia, in light of its dovishness towards bitcoin in the past week, has opened up the floodgates to mining. After all, Russia has the most abundant energy resources in the world.
Panic in the air. #Crypto
Meanwhile #Bitcoin's 30d SMA Mean Hash Rate is at a all-time high.
The #BTC network has never been more resilient & secure.
Full on global miner FOMO at this point. It's almost as if #Satoshi understood game theory & incentive models. pic.twitter.com/bARrEUkdZj
— Plan©️ (@TheRealPlanC) February 13, 2022
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Intel Chips to Increase Mining Capacity
It is a well known concept that the price of bitcoin always follows the hashrate. Being that the hashrate, according to the above metrics has “surpassed” the price, logic tells us that bitcoin will catch back up and rise in accordance with hash rate. With Intel getting into mining chips, making more efficient chips for mining, people will be able to deploy more of them for the same energy cost. This is incredibly significant for the network.
Intel says more information about the chip “will become available at the International Solid-State Circuits Conference, which starts on February 20th.” Jack Dorsey’s Block (formerly Square) has already bought in, pre-ordering the forthcoming chips. These energy efficient chips are a win-win; more energy efficient chips are great for bitcoin and bad for bitcoin fud.
Michael Levitt, co-founder chairman and CEO of Core Scientific, recently told Cointelegraph that he “fully anticipates for the BTC global hash rate to continue growing at an aggressive pace.” Which is to say, BTC will grow an aggressive pace in tandem. Price and hashrate cannot be separated. So when will we see price follow? Bulls are trying to close the weekly candle at a higher low, which would mean 42.5k would need to hold today.
Bulls Try to Close Weekly Candle Above 42.5k
Low volume on Super Bowl Sunday is causing bitcoin to fall below the key 42.5k level, which would mean the bulls failed to close the week with higher lows. The weekly close is less than 6 hours away, and if Bitcoin can get above 42.5k, the close would be a three-week high. Currently, BTC is sitting around 42.3k, keeping traders on edge.
If #BTC Weekly Closes below the black ~$43100 resistance…
A retest attempt of the red $38600 area would be a possibility (just like in previous green circles)$BTC #Crypto #Bitcoin pic.twitter.com/ri1Q39e3Ab
— Rekt Capital (@rektcapital) February 13, 2022
Will the Super Bowl commercials cause a spike in the price and get us over the hump? Could happen. The market is still on edge with the current geo-political woes between Russia and Ukraine, so a bad weekly close could spook investors even more. Many are predicting cataclysmic dumps based on the result of the weekly candle.
If weekly #BTC candle going to close like it then its very bearish…last time we had pump of approx 12% but then dumped approx. 55%. pic.twitter.com/FUD3go4D74
— Cryptogeek (@CryptoG42063154) February 13, 2022
It is unlikely that such a dump would play out; there is no greed at all in this climate, and it wouldn’t be surprising to see bitcoin do the opposite. Think about how Gold has fared quite well during the recent global turmoil–after all, BTC is digital Gold. Nevertheless, the hashrate, fundamentals, and adoption have never been higher.
Today’s “crypto bowl” narrative would indicate the market is frothy, but its the opposite. The market is in fear but the outward picture is sheer bullishness on Bitcoin and crypto, and the hash rate is showing that writ large. That cannot be ignored.
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