- Bitcoin’s hash rate hit a monthly low on Christmas Day
- FX reserves continued to decline, but BTC excelled in neutrality
That Bitcoin [BTC] Hashrate slipped off the radar on December 25, hitting just 170.6 ExaHash per second (EH/s), CoinWarz data revealed. According to Dennis Porter, CEO of SatoshiActFund, the incident happened due to the harsh weather conditions in Texas.
Over 30% of the #bitcoin hashrate has gone offline due to the extreme weather in Texas, and yet the global #bitcoin network continues to function perfectly.
Now imagine if Amazon or Google tried to shut down 1/3 of their data centers. pic.twitter.com/G49iqBZXDL
— Dennis Porter (@Dennis_Porter_) December 25, 2022
Read Bitcoins [BTC] price prediction 2023-2024
It was paramount that the hashrate was impacted as the United States city hosted a lot of it Bitcoin miner. The harsh weather meant miners had to suspend operations. Meanwhile, the hashrate plunge didn’t halt BTC transactions, despite hitting its lowest level in almost a month.
BTC: Is it time for a revisit?
In the past, such a sharp reduction in hashrate indicated a negative impact for BTC, according to Korean crypto analyst Crypto Sunmoon. In fact, this implied the certainty of a drop in value, as the hashrate acts as the computing power to process transactions on the Bitcoin network.
Explain his opinion of his CryptoQuant releasesaid Crypto Sunmoon,
“The hash rate has dropped dramatically. This suggests that some miners have stopped mining and are facing financial difficulties. Miners who stop mining will likely sell their bitcoins. In the past, when the hash rate (30 EMA) made two highs and fell, bitcoin prices also fell twice.”
Source: CryptoQuant
However, early BTC signs indicated that the case could be different this time. This was due to BTC price staying in the $16,800 range at press time. Corresponding CoinMarketCapthis represented a neutral position on the previous data.
On the other hand, Bitcoin exchange reserves, which used to decline, were still in the same region. According to Ghoddusifar, another CryptoQuant analyst, reserves were usually up accompanied with a surge in BTC price.
Therefore, this dwindling case meant that BTC remained at risk of another drop. Nonetheless, this could mark the start of a bullish crossover.
Source: CryptoQuant
A 0.45x decrease IF BTC falls to Ethereum market cap?
Chart wise here is the condition of the king coin
On the four-hour chart, the Relative Strength Index (RSI) has exited its potential to buy strength. At the time of writing, the Relative Strength Index (RSI) was at 51.33, maintaining neutral momentum.
In the short-term, BTC could likely fall on bear demand. This was due to the state of the Exponential Moving Average (EMA). At press time, the 20 (blue) and 50 (yellow) EMAs are tightly positioned. However, the 50 EMA still remained slightly above. Hence the bearish conclusion.
Source: TradingView
Regarding the hashrate, Porter tweeted in the early hours of December 26th that it had recovered and hit a weekly high in less than 24 hours. The head of the Mining Advocacy Association also mentioned that Bitcoin’s engineering is exceptional and great for the power grid.
#Bitcoin hashrate crashed 30% and recovered in 24 hours with no impact on the network. A marvel of technology.
Tick tock next block. pic.twitter.com/0j2pYhAzwU
— Dennis Porter (@Dennis_Porter_) December 26, 2022
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