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- The Bitcoin hashrate hitting new all-time high means the Bitcoin blockchain is more secure than ever before.
- Bitcoin active addresses withness a strong uptick while Bitcoin’s liquid supply at the exchanges drops.
Over the last weekend, the world’s largest cryptocurrency Bitcoin (BTC) registered an important milestone. Last Saturday, February 12, the Bitcoin hashrate jumped a staggering 30 percent, that is from 188.40 exahashes per second (EH/s) to a new all-time high of 248.11 EH/s.
This massive hashrate surge just came in a single day making the Bitcoin network more secure than ever before. The hashrate represents the computational power required to process transactions on the Bitcoin blockchain. The higher hashrate means that the Bitcoin blockchain has attained further decentralization.
Furthermore, high network security will ensure that Bitcoin miners can easily prevent any third-party attacks from taking place. As per data on BTC.com, the Bitcoin network hashrate is currently at 205 EH/s. The Bitcoin network hashrate has declined though after hitting a new. But data from BTC.com shows that the Bitcoin mining difficulty shall further increase by an additional 3.24 percent ahead of this week when the network readjustment happens.
The Bitcoin network hashrate witnessed quite volatility over the last year. In mid-2021, the Bitcoin network hashrate plummeted more than 50 percent after China’s sweeping ban on its crypto mining industry. All of the Chinese miners then relocated to other parts of the world such as the U.S., Russia, and Kazakhstan. the Bitcoin miners from the U.S. alone power 35 percent of the Bitcoin network.
The Bitcoin hashrate thus came collapsing down by July end before resuming the upward journey once again. However, post the China ban, the Bitcoin network has witnessed a healthy bounceback. Within a few months, it recovered the entire loss surging higher further.
Related: Crypto mining in China goes on – though illegally now
Bitcoin price hovers around $42,000
Ever since hitting $45,000 last week, the Bitcoin price has been moving sideways in a downward trend. Just as the Bitcoin network hashrate touched a new all-time high, the Bitcoin network active addresses also touched a new all-time high in 2022. As on-chain data provider Santiment reports:
Bitcoin had a mild decline over the weekend, but Saturday was the highest amount of active addresses (1.08M) recorded in 2022. The uptick in participants transacting on the $BTC network is a nice sign of increased utility, a predecessor to price rises.
Another positive development with Bitcoin is the declining liquid supply on exchanges. Santiment states: “With another series of dramatic drops, #Bitcoin’s supply on exchanges is now down to just 10.87 percent, the lowest percentage seen since December, 2018. Generally, this continued trend of coins moving off of exchanges limits the risk of major sell-offs”.
The $42,000 level remains a crucial juncture for Bitcoin as its trading pretty close to its 50-day moving average. Any correction could mean a further price fall in the near term. As per the details, the Bitcoin Fear and Greed Index is currently at 46/100 which means “neutral”.
