Bitcoin data highlights 3 key reasons why investors don’t care about BTC price
Much has been made of Bitcoin’s (BTC) poor price action as of late, with many analysts making the case for further bearish momentum in the weeks ahead.
Yet it wasn’t too long ago that many investors and crypto pundits were raving about some noteworthy fundamental metrics that were, and continue to be, quite bullish.
Let’s take a look at three Bitcoin metrics that bulls might keep in mind.
Bitcoin’s hash rate, a metric showing the amount of computing power dedicated to mining BTC, recently hit a record high, indicating the overall strength of the network and continued interest from miners. There has never been more security in Bitcoin, and it highlights the fact that miners appear to have faith in the future of the Bitcoin network.
BREAKING: #Bitcoin Hash Rate hits a new ATH! pic.twitter.com/kSD7LCCHkl
There’s some controversy as to whether or not a high hash rate constitutes a bullish signal. Investors equate the increased hashing power as a sign of an impending price increase, while others say the opposite, or that no correlation exists at all.
When looking at the past year’s data, there does appear to be a distinct relationship between hash rate and price.
This makes perfect sense, given that miners will eventually begin to mine more when prices rise. The hash rate and miners’ actions are also impacted by the Bitcoin difficulty adjustment that occurs roughly every two weeks. As the hash rate rises, so does the difficulty, meaning it requires more energy to mine 1 BTC.
A higher hash rate can only sustain lower prices for so long because miners’ cost of production increases with difficulty, while their profits diminish. Therefore, either the price must rise or the hash rate will fall at some point.
Currently, the price has
Read more on cointelegraph.com
