The aggregate computing power of the Bitcoin (BTC) network has passed the level of 100 EH/s again. At the press time, the BTC hash rate is at 109.281 EH/s mark. This indicator has increased by 240% since the beginning of the year.
Factors That Affect Bitcoin
The increase in demand is due to the upcoming halving of BTC block rewards and the end of the rainy season in southwestern China.
Also, Bitmain completed the construction of a 50 MW mining center in Rockdale, Texas. This will further affect the increase of this indicator in the Bitcoin network. Therefore, we should expect the fixation of new highs in the near future.
It was previously believed that the BTC price follows the hash rate, however, the price of the crypto asset keeps falling. The first cryptocurrency has been trading below $ 10,000 for more than a month. And its hash rate continues to grow even with such a decrease in the value of BTC.
Therefore, the theory that the growth of the hash rate and the price of the crypto asset is correlated does not apply. Although earlier in June the increase was accompanied by a rise in prices. Now we can safely assume that it was just a coincidence.
Now the Bitcoin chart looks like:
Boys, real talk, this looks absolute garbage. pic.twitter.com/b04KYQ8DoC
— DonAlt (@CryptoDonAlt) October 23, 2019
It looks like a range that will go on for weeks and weeks. BTC will touch $7,500, people will call doomsday, it will go back up, will touch $8,750 or $9,000 again. That time people will call new ATH and so on and on.
At the same time the BTC hash rate demonstrates the reverse picture:
The BTC rate is affected by a combination of certain factors and a comprehensive analysis is always required. Among them are the number of transactions in the mempool, halving, trading volumes, technical and fundamental factors, news, and the number of new wallets.
A popular trader and analyst on Twitter PlanB gave the investigation of the BTC rate before the halving. According to the chart showing the price of Bitcoin 6 months before the event, there is a high certainty that Bitcoin price will increase before halving.
In the meantime, specialists and participants in the crypto community continue to study the possibilities for further movement of the course of the most capitalized cryptocurrency itself.
Morgan Creek Digital fund co-founder and partner Jason Williams believes that Bitcoin halving will push the price of the asset to the level of $ 55,000. To demonstrate his point of view, the specialist presented the chart also based on PlanB investigation.
”The model predicts a bitcoin market value of $1trn after next halving in May 2020, which translates in a bitcoin price of $55,000.” ~ PlanB
— Jason A. Williams 🦍 (@JWilliamsFstmed) October 20, 2019
Also, participants in the crypto community compiled a chart that clearly demonstrates the behavior of the cryptocurrency exchange rate before the halving and after this one. Based on a comparison of previous periods with the current BTC movement, users predict the asset’s imminent growth.
At the same time, commentators noted that a decrease in the level of remuneration in May 2020 will reduce the number of new Bitcoins in circulation to $ 63 million per week (at current BTC rate).
To those that think Bitcoin's inflationary schedule is less effective with time …
At current values (~$8200), 2020's halving will remove $51.7million/week of newly mined Bitcoin from the sell-side https://t.co/Sk1ueDK8QX
— Alistair Milne (@alistairmilne) October 21, 2019
Amid disputes about the further movement of the cryptocurrency rate, commentators on the network drew attention to the possibility of further growth in the level of dominance of bitcoin in the market.
Recall that earlier, members of the crypto community presented a forecast according to which during October the BTC should have time to touch the level of $ 16,000.