The bitcoin (BTC) hashrate has hit a new high of 242 exahash per second this week. That is striking, given that the hashrate had fallen back to 193 exahash per second in July and the bitcoin price is not much better at the moment.
New record for the hashrate
If we are to believe Glassnode’s numbers, the Bitcoin network hashrate has averaged 242 exahash per second over the past seven days, an all-time high. That can be good news for investors, because in general the price and the hashrate show a high correlation.
A high correlation means they often move in tandem. Is the hash rate going up? Then the price often follows and vice versa. The graph above shows how aggressively the hashrate has increased in recent years.
In that increase, we also clearly see how the mining industry has developed from an attic activity to the billion-dollar ball it is today. Nowadays a bitcoin miner is almost no longer part of it if it is not listed on the stock exchange. Ten years ago we would never have dared to dream that.
Start of an uptrend?
Restoring the hashrate since July of this year is a good sign. After all, there is a positive relationship between the bitcoin price and the hashrate. Glassnode’s Bitcoin Hash Ribbons indicator also hints at a recovery for bitcoin right now.
It is often a favorable sign for the price if the 30-day average of the hashrate crosses the 60-day average upwards. That’s exactly what we’ve seen now, so it’s quite possible that we’re heading into an uptrend.
Ultimately, of course, this remains to be seen. After all, past performance is no guarantee for the future and at the moment macroeconomic conditions seem to outweigh on-chain analysis. That does not alter the fact that this is a positive development for bitcoin.