Bitcoin’s hash rate is still down compared to 2019, but the price of the asset does not seem to be affected.
Although Bitcoin’s hash rate (BTC) has fallen sharply in recent weeks, Garrick Hileman, head of research at Blockchain.com, is not worried.
Blockchain.com was founded in 2011 by former members of another crypto startup, Crypto Bull. It was one of the first sites to provide analytics on Bitcoin, but over the years it has progressively expanded the number of services offered: today it provides users with a non custodial wallet, an exchange and a crypto lending platform.
The company has also coined the term „hash rate“ as „estimates the number of terahash per second that the Bitcoin network is making“.
Bitcoin’s hash rate tends to be highly volatile: March 25 was at its lowest point of the year, 76 million TH/s, before skyrocketing after Bitcoin’s halving. On 25 September, this rising trend brought the hash rate to 161 million TH/s.
One month later, however, this trend reversed; on 27 October, the hash rate dropped to 95 million TH/s. The cause is still unknown, although some have suggested that the decline is related to the seasonal migration of Bitcoin miners in China.
In an interview with Cointelegraph, Hileman explained that he is not particularly concerned about the decline:
„The hash rate is much higher than the immediately post-halving value in May. So for me, this is not a major concern. It’s an interesting fact, but we have seen other falls after halving that in percentage terms seem more or less similar. So it could just be noise or something not so significant, but it’s obviously a phenomenon that needs to be monitored“.
The hash rate has recovered slightly in the last two days, returning to 107 million TH/s; however, it is still down from the beginning of the year, when it was 111 million TH/s. Although historically the price and the hash rate have shown a strong correlation, the latest contraction does not seem to have affected the price.