Bitcoin recently saw a massive price crash, bringing the price of the premier crypto down to around $8,000. At the time of the price drop, some observers put forward theories stating that a drop in hash rate was one of the reasons for the drop. However, Bitcoin’s hash rate has now risen to high levels once again.
Bitcoin hash rate regains recent losses
Specifically, fresh data from the Bitcoin network monitoring resource Coin Dance suggests this rise was in fact quite substantial. Although the hash rate first fell from around 104 quintillion hashes per second to around 57 quintillion hashes per second, this has since changed.
This took place on September 23rd, however, the hash rate has now once again risen sharply. The following day, September 24th, saw the Bitcoin network hash rate increase substantially to around 114 hashes per second.
As such, the hash rate began to come close to its all-time high of around 121 quintillion hashes per second, seen during the last month. At the time of Bitcoin’s substantial price drop, some thought the price crash could have been related to the drop in hash rate.
Bitcoin price not yet affected
Now, however, it seems clear that the hash rate has recovered nearly its entire fall. The price of Bitcoin, on the other hand, has not. At the time of writing, Bitcoin is trading at a price of $8,054 – which means that the premier crypto has lost around 20% of its value within a single week.
The hash rate is widely seen as a key indicator of commitment to the Bitcoin mining process. Consequently, the initial drop in the Bitcoin hash rate was seen by some as worrisome. Specifically, this could be interpreted as a warning sign of declining Bitcoin mining commitment.
Nevertheless, one should state that the hash rate of the Bitcoin network only give a rough estimate of the computing power. As such, it is not entirely accurate to gauge the health or condition of Bitcoin merely using the hash rate.
With that said, however, these latest statistics indicate that Bitcoin’s hash rate is still on an upward trajectory. Furthermore, this means that the rough estimate of the network’s health is also increasing.
It, therefore, remains to see how the price of Bitcoin will continue to develop. Nonetheless, these latest statistics seem to nullify the concern that Bitcoin’s hash rate was about to permanently plunge to lower levels.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.