Bitcoin Hash Rate Hits New All Time High While BTC Price Recovers Slightly to Over $9,600 USD
- Bitcoin futures expiry and low trading volume could be behind the price drop
- Bitcoin Hash rate makes yet another all-time high
- Revenue rising at a much higher rate than hash rate
Bitcoin price is not having good last few days, weeks, and even months as it dropped below $10,000 level.
“Chicago Mercantile Exchange Bitcoin futures contracts are set to expire tomorrow, which historically has prompted trading activity within the cash market.”
Combined with the low trading volume we have been seeing in the market all this time has further affected the price.
“It’s possible that investors are selling off now to insulate themselves from greater losses in the coming days. Furthermore, this downward momentum has been exacerbated by low trading volumes over the last week, which has meant that a relatively small number of big trades have been able to move the needle sharply.”
Bitcoin price is currently trading at $9,620, recovering from yesterday's drop to below $9,300.
Bitcoin under $9,500. If you are panicking, you are a fool.
— John McAfee (@officialmcafee) August 29, 2019
Bitcoin price might be moving in the downward direction but the network is stronger than ever as hash rate makes yet another all-time high (ATH).
— Boxmining (@boxmining) August 30, 2019
After dropping to the bottom at 33.2 Th/s in December Bitcoin hash rate exploded. Since then, we have been hitting a new high every other day.
Now, on August 29, the hash rate of the network spiked to another ATH at 80.1 Th/s, as per Bitinfocharts.
Bitcoin Hashrate, Source: https://bitinfocharts.com/comparison/bitcoin-hashrate
Despite the hash rate hitting new highs, all-time revenue for Bitcoin miners topped at $14 billion. Revenue has actually risen at a far higher rate than the hash rate.
After each ATH #bitcoin price drops until a lot of miners aren't profitable. Miners switch off hardware (capitulate), hashrate drops, and difficulty adjusts downwards .. until miners become profitable again and difficulty rises. Difficulty bottom (100%) starts a new bull market🚀 pic.twitter.com/IgriE3GkPq
— PlanB (@100trillionUSD) August 21, 2019
Recently Coin Metrics reported that though the revenue went up fast starting 2018, initially it took about eight years for the total revenue to break past $5 billion. And as it happens, the next $5 billion mark was much faster, taking only right months to break through $10 billion.
Now, if we continue to grow at the current rate, Bitcoin miners’ revenue will reach $20 billion mark sometime in early 2020.
However, as hash rate continues to rise while price struggles, the revenue might face some real danger.