Bitcoin [BTC]: Why an increase in hashrate favors the bears

• Another ATH of Bitcoin’s hashrate could cause BTC price to drop.
• The king coin recently broke away from the S&P 500 trend.

A clear drop Bitcoins [BTC] The price could be imminent if the hashrate hits another all-time high (ATH), according to a CryptoQuant analyst revealed on February 23rd. analyst Gigisulivan, who is also a macroeconomics expert, opined that the Feb. 16 ATH is just a warning sign. Furthermore, a repeat of the event could lead to a catastrophic outcome for BTC.

To read Bitcoins [BTC] price prediction 2023-2024

Past events are the evidence

Bitcoin’s hash rate is the computing power used to mine and process BTC transactions on the Proof-of-Work (PoW) blockchain. On January 26th, Gigisulivan had released one publication Explanation of the impact of the hashrate on the price of the coin.

He initially stated that investors’ bullish expectation in the case of a hashrate ATH was a delusion. Maintaining his stance, the analyst gave examples of occasions when the metric increase caused the king coin to fall in value.

Source: CryptoQuant

As for the current status, Gigisulivan pointed out that BTC has been in critical condition since the ATH was recorded seven days ago. The on-chain analyst cited the condition of the 200-week moving average (MA) and Bitcoin’s correlation with the stock market as reasons why a price decline could occur. He noticed,

“February 16 fresh hashrate ATH comes at a critical juncture for Bitcoin, coming off 200 Weekly MA and its first weekly deathcross, with the stock market weakening causing bearish sentiment to gain strength.”

Aside from that, tethers [USDT] The massive dominance of the last few days also spoke in favor of bears. Recall that the ban of Binance USD [BUSD] And USDC’s probable probe had prompted many investors to choose USDT as their preferred stablecoin.

For Gigisulivan, this supremacy could push BTC to $21,500. This was because the coin appeared overvalued relative to the stock market.

Source: TradingView

BTC: Slipping away from tradition

Bitcoin has often correlated with the stock market. But another CryptoQuant release from the analyst at Quantum Economics Jan Wustenfeld in contrast to Gigisulivan’s Perception. Accordingly Wüstenfeld, BTC had de-correlated from the S&P 500 Index (SPX) for the past 20 days.

Interestingly, the coin had also changed its response to news like that FOMC result. So, could it be that bitcoin started to react only to crypto market activity?

How many are Worth 1,10,100 BTC today?

Well, Wüstenfeld mentioned that it wasn’t the first time something like this had happened as there was a similar incident during the collapse of FTX. While BTC lost the $25,000 region, the SPX followed an uptrend.

Source: CryptoQuant

It was not certain how long the state of conflict would last. However, Wüstenfeld acknowledged that it would be interesting to see as some sections of the crypto community have even longed for the split.

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