In a reassuring move for turbulent markets, Bitcoin’s hashrate has hit an all-time high of 207 E/hs – a stellar return to network integrity.
With crypto markets struggling to stay afloat in a turbulent sea of ranging price action, the impressive hashrate has provided much-needed reassurance.
Perhaps more importantly, the new all-time high also represents a significant milestone in Bitcoin’s evolution.
Ever since the collapse of Chinese Bitcoin mining in late May, the state of the network has been in serious flux – amid the largest migration of ASIC mining equipment in history.
The exodus was catalysed by officials in Beijing and their decision to shut down the substantial Chinese BTC mining industry in a move that reduced pressure on the national grid and set the stage for the digital yuan CBDC.
It would appear now that continuing Chinese operators have successfully moved their operations to more inviting regulatory environments – chiefly Kazakhstan and the United States.
This is welcome news for the industry and should, in theory, open the doors to the end of Chinese-related FUD around Bitcoin.
How perilous is a high hash rate?
At the time of writing the SHA-256 hashrate sat 168.92 E/hs – a notable recoil back from the ATH – but still a staggering level of competition that sits very high compared to its historical performance.
These are also ominous heights, shared with the previous peak that immediately preceded the catastrophic May downturn, and leaving some wondering whether Bitcoin’s price action could be heading further down.
Academics, however, would be quick to reassure with a Russian study into the relationship between Bitcoin’s price and hashrate, revealing they’re only loosely correlated.
A peak at network difficulty could offer some additional mental ease. It too has ridden to near record levels sat at 24.27T (versus an all-time high of 25.04). This means a successful BTC hash is rarer than almost any moment before. On the supply side this could positively influence price.
Read more: Can Ethereum surpass Bitcoin’s market cap in 2022?
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.