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Bitcoin miners unmoved by weekend’s sell-off as hash rate on the rise

Bitcoin miners unmoved by weekend's sell-off as hash rate on the rise

Despite Bitcoin’s significant price correction to below the $50,000 mark over the weekend, the asset mining hash rate has increased, indicating mining activity has not been swayed by the price movement. 

Over the last 30 days, the hash rate has increased 5.91% from 152.73 as of November 7th to 161.755 on December 5th, according to data provided by Blockchain.com.

Additionally, between December 2nd and December 5th, the hash rate has surged 6.9% amid the high price volatility.

The Bitcoin mining hash rate (30-day average). Source: Blockchain.com

The current hash rate figures contrast the previous correlation to Bitcoin price movement. Generally, the hash rate increases when Bitcoin’s value surges. The hash rate also tends to drop alongside the price based on historical analysis. 

Bitcoin’s high volatility

Interestingly, on December 4, at some point, Bitcoin fell below $47,000, crashing to a two-month low amid high volatility. Notably, this is the most significant one-day loss in Bitcoin price since May 15. By press time, the asset was trading at $47,400, plunging 4% in the last 24 hours.

Although the surge in the hash rate to some extent can be viewed as a mystery, several factors might be contributing to the metric. It’s an indicator the network’s mining difficulty has dropped, making it easier to mine despite the correction.

The hash rate has also increased steadily, pointing to a surge in Bitcoin mining power alongside the cryptocurrency’s adoption. 

Furthermore, a rising hash rate points to also highlights that the mining activities are back to normal levels after China initiated a crackdown on the sector. Bitcoin’s value plunged alongside the hash rata in mid this year after Chinese authorities began outlawing mining.

Notably, at the time, China controlled a significant share of the global Bitcoin mining activity forcing operators to settle in other friendly jurisdictions. 

Bitcoin’s mining difficulty

Additionally, when the hash rate increases, the Bitcoin mining difficulty is also expected to surge. As we previously reported, mining the asset became more accessible and profitable amid the drop in hash rate amid the Chinese crackdown. Interestingly, when many Bitcoin miners go offline, the share of other miners in the network increases. The current hash rate is also likely to push more miners online.

Despite Bitcoin experiencing massive price correction over the weekend, market leaders are projecting that the asset still has significant highs to accomplish.

As reported by Finbold, Alex Mashinsky, the CEO of cryptocurrency lending platform Celsius Network, has maintained that Bitcoin might trade at around $140,000 before April 15, 2022, aided by massive adoption. 

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