Following its short-lived price crash, Bitcoin has been in the news lately. The crash brought the price down to the $40k range before it went back up to the usual $50k range and it has since been swinging between $48k and a little over $50k.
The crash brought some other issues, with the most significant being the fall in BTC’s network hash rate (processing power of the Bitcoin).
The hash rate seems to have been impacted positively now on the price of Bitcoin. According to a report by Glassnode, BTC’s hash rate is currently recovering and is getting back to its previous high level.
As of writing, the hash rate had claimed a 90% recovery at 172EH/s, being 4% away from reclaiming the earlier ATH of 180 EH/s.
However, it’s important to note that Chinese miners contributed massively to the network’s harsh rate, accounting for more than 65% noting that at the time.
In May, many Chinese miners went out of business due to the crackdown by the Chinese government. Other miners relocated their operations to other countries like Kazakhstan and the US and as a result, the BTC network hash rate crashed by a whole 50%, putting a strain on both the market atmosphere and the price.
As of now, China is out of the game and as it no longer contributes to the overall hash rate of the Bitcoin network.
The market price of the network hash power and Bitcoin have been proven to be dissimilar and independent factors.
The price is affected by community dynamics and market forces while mining activity dictates hash power. As of writing, Bitcoin trades at around $50,489, with a market dominance of 40% and a a total market cap of $956 billion.
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