Bitcoin Hash Rate Balloons To Record High — Will Price Go Up As Well?

[Bitcoin]

Bitcoin Hash Rate Balloons To Record High -- Will Price Go Up As Well?

The Bitcoin network hash rate notched a new all-time high of 248.11 million terahashes per second (TH/s) on Saturday.

It has risen from 188.40 EH/s to its new all-time high in just one day, according to Blockchain.com data. In the previous few hours, it has hovered around 209.6M TH/s.

Security is a critical component of every network. Increased security makes a network more resilient and makes it more difficult to attack.

This is when the hash rate is relevant. It refers to the total amount of processing power available to a network via crypto mining, such as the Bitcoin network.

Hash Rate Up: A Bullish Indication

Hash rates are a metric for the amount of processing power necessary to mine blocks on the Bitcoin network, and greater hash rates make it far more difficult for a single entity to attempt network control.

The technique by which miners authenticate transactions and secure the network is called crypto mining. That is why contributing more computational power makes it more secure.

The recent increase in the hash rate of the Bitcoin network adds another layer of protection against so-called double spending.

BTC/USD was at $44,062 in the daily chart | Source: TradingView.com

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Double spending is the practice of undoing transactions on the blockchain and accounts for more than 50% of the hash rate.

When combined with Bitcoin’s all-time high mining difficulty, an increasing hash rate is a pretty bullish sign that miners are becoming more prepared to invest long-term resources in the cryptocurrency’s infrastructure.

Bitcoin has regained strength in recent days following a month-long decline to yearly lows around $33,000.

Taking Profits: Playing Safe

In the first week of February, the cryptocurrency broke over the $38,000 and $41,500 resistance levels to achieve monthly peaks of $46,000, a level last seen in the latter weeks of 2021.

Traders have already taken profits on the move, with bitcoin falling to a weekly low of $41,600 in the early Asian hours of Monday before recovering to around $42,000 during extended sessions.

Meanwhile, the Bitcoin network has experienced numerous abrupt or dramatic shifts in a short period of time following China’s crackdown on the mining business last year.

This broad clampdown resulted in the hash rate crashing to as low as 58 EH/s in July, casting doubt on the industry’s long-term viability.

However, as a result of several big Bitcoin mining operators relocating to nations such as the United States, Kazakhstan, and , Bitcoin’s hash rate has been steadily increasing since then.

Related Reading | 2021 Was Year Of Bitcoin Accumulation As Long-Term Holdings Rose By 16%

Featured image from BeInCrypto, chart from TradingView.com

Source: Bitcoin Hash Rate Balloons To Record High -- Will Price Go Up As Well?