Bitcoin Hash Rate Bounces Back from its Flash Crash of 40%, Will the BTC/USD Price Value Follow?
Bitcoin hash rate is back to 92,800,295 Th/s after flash crashing 40% to 67,383,654 Th/s from 98,120,057 Th/s on Sept. 23. A few days back on Sept. 18, it hit its all-time high of 102,848,735 Th/s, as per the data provided by Blockchain.com.
Mati Greenspan, senior analyst at eToro believes it was just a “data error after all.”
The "hashrate crash" isn't real. Long block intervals are vastly overrepresented in fixed-period sampling
This is because the interval is long. A 18-minute block has approximately the same likelihood as a 2-minute block, but affects time-based sampling 9x more (!!!)
— James Prestwich (@_prestwich) September 24, 2019
Also referred to as computing power, the hash rate is a parameter that measures the number of calculations that a network can perform each second.
Bitcoin hash rate started to look parabolic just like price after surging 30 percent this month and about 10 percent only this week.
The Bitcoin network has been growing stronger and never has been more secure.
A higher hash rate means greater competition among new miners to confirm the block. Also, the higher the hash power, the more the number of miners need to commit a 51 percent attack making a network more secure.
The flash crash of hash rate on Sept. 23 came out of nowhere and was unexplained after it made a string of new all-time highs throughout summer.
This crash in hash rate coincided with Bitcoin price that plunged to $8,030 yesterday, down 12.93 percent in the past 24 hours, as per Coincodex.
While experts argued throughout the summer that the new highs hash rate is making will be seen in BTC price, with Bitcoin proponent Max Keiser claiming, “Price follows hashrate and hashrate chart continues its 9 yr bull market,” exactly the opposite happened.
But it is not the first time that BTC hash rate crashed. Back in November 2017, the hash rate dropped 50% while BTC price dropped about 30 percent.