Bitcoin could very well go on yet another bull run following a week-long consolidation.
The world’s leading cryptocurrency went all the way up to its yearly high of about $9,350 earlier on Sunday.
The Bitcoin network registered a record hash rate of 62 quintillion-per-second this past Friday. That’s the highest it has ever been — with the previous peak recorded at 61.9 quintillion-per-second last year in August.
This new milestone is in line with the prevailing trend that started early in the year with the hash rate consistently increasing over each seven-day period, on average.
For those out of the loop, a steadily-increasing hash rate benefits the network on multiple fronts. Security of the blockchain itself, for example, is significantly enhanced as more mining nodes join the network. More specifically, an evenly distributed hash rate where no individual entity has any leverage over the primary chain greatly reduces the threat emanating from a possible 51% attack.
Besides that, the new ATH hash rate is also likely to kill off all the buzz surrounding an impending mining capitulation triggered by the 45 percent drop in hash rate last December.
The Bitcoin hash rate has reached a new ALL-TIME-HIGH!!
The fundamentals of Bitcoin are looking increasingly strong. This, in combination with the recent bull run to $9k, tells me that the next big 3 year hype-cycle towards $250,000 dollars has started.
$20,000 SOON!! pic.twitter.com/JQgMVykSIb
— The Moon (@themooncarl) June 17, 2019
Worth noting here is that any increase in hash rate usually directly correlates with an increase in the asset’s price (mostly in excess of efficiency gains). However, for logistical issues new miners face while joining the network, the growth in hash rate usually lags the corresponding price increase on the order of several weeks.
Therefore, it is likely that the current ATH hash rate will be further pushed to new extremes by the ongoing (seemingly) bullish market sentiments as new mining rigs enter the game.
Meanwhile, Bitcoin’s active daily address count, which happens to be yet another key fundamental that reflects the asset’s long-term prospects, is also on the rise. Earlier last week, the number of daily active Bitcoin addresses surpassed the one-million milestone for the first time since late 2017.
Do you agree with the bullish sentiment that these new developments could very well be the final nail in the coffin for the proverbial crypto winter? Where do you see the BTC price heading from here? Share your thoughts in the comments below.
Images courtesy of Blockchain.info, Twitter, CoinMetrics.io.