bitcoin mining to BTC It is generally considered as a strong indicator in evaluating demand and is sometimes used to evaluate market conditions.
According to the data shared by WuBlockchain, the mining difficulty of BTC decreased by 1% today. This decrease rate is considered as a moderate decrease.
How Does the Hash Rate Reflect Market Conditions?
A to cryptocurrency In addition to showing the demand, investors can comment on coin accumulation or coin sales in the market thanks to the hash rate.
As it is known, during the bull run in the summer of 2021, a large Bitcoin mining ban began to be implemented in China, and with this, the largest decrease in hash rates in history was recorded.
After the decrease in mining hash rates, a 50% decrease was observed in the BTC price.
Today, when we look at the mining difficulty and hash rate graphs, we see that both indicators show a continuous upward trend.
This shows that the demand for BTC continues to remain high despite the bad market conditions, according to analysts.
On April 14, Bitcoin mining difficulty dropped by 1.26% to 28.23T, after rising 4.13% last time. The current hashrate of the entire network is 202 EH/s.
— Wu Blockchain (@WuBlockchain) April 15, 2022
However, analysts think that when the hash rate rises while the BTC price drops, the selling pressure in the market may increase and BTC may fall a little more.
Bitcoin price is trading at $ 40,335 at the time of writing, with 1.51% rise in the last 24 hours. In altcoins Ripple (XRP) It has differentiated from other cryptocurrencies with an increase of approximately 8%.
*Not investment advice.