The Bitcoin hashrate recently hit a new all-time high amid a price rebound for the flagship crypto. This development is significant considering what it means for the Bitcoin ecosystem and how it could impact prices going forward.
Bitcoin Hashrate Hits Record Highs
Data from the Hashrate Index shows that BTC hit a new all-time high network hashrate of 677 EH/s on July 26, surpassing its previous high of 656 EH/s recorded on May 27. This is based on data from the seven-day SMA (Simple Moving Average), which miners consider the most accurate estimate.
However, the 3-day SMA provides an even more bullish outlook for Bitcoin’s hashrate, with the mining output touching a record high of 707 EH/s on July 23. An increase in the network’s hashrate usually means more computational power is being added to verify transactions. This makes the network more secure and could also have a significant impact on Bitcoin’s price.
The hashrate’s impact on BTC’s price most especially comes from the fact that an increase in this metric means that miner capitulation is well over and that there is once again stability among these miners. This miner capitulation refers to when miners begin to offload a significant amount of their Bitcoin holdings and possibly cease to operate due to non-profitability.
This began after the halving event in April, as miners saw their mining rewards cut in half. This led to a wave of sell-offs among these miners, especially as BTC’s price experienced a downward trend after the halving. Bitcoinist reported that these miners sold over 30,000 BTC in June, which led to massive price crashes for the flagship crypto.
Meanwhile, the new highs in Bitcoin’s hashrate were to be expected. Bitcoinist recently reported the hash ribbon indicator flashing a buy signal, suggesting that capitulation was almost over and that a massive rebound in BTC’s price was imminent.
BTC Is Just Getting Started
Bitcoin is currently enjoying an uptrend. The flagship crypto is again eyeing the $70,000 price level and looking to flip it as support. Based on recent technical analyses, this should happen soon enough as crypto analysts like Mikybull Crypto predict that BTC could hit a new ATH on this next leg up.
Mikybull Crypto recently stated that a “crazy rally” was on the horizon for BTC. Based on the chart he shared, the flagship crypto is well-primed to rise to as high as $90,000 between now and September. He also predicts that Bitcoin could reach as high as $136,000 in the long term as it forms a top for this market cycle.
At the time of writing, Bitcoin is trading at around $69,500, up over 3% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
