Bitcoin hashrate barely dropped after price crash to $3,600: What’s the theory? And is Bitcoin hashrate remaining high a positive factor?
Bitcoin hashrate barely dropped after price crash to $3,600: here’s why it’s a positive sign
The hashrate of the Bitcoin blockchain network barely flinched because the price of BTC plummeted to $3,600, by around 50 percent within a 24-hour span. it's going to indicate that big mining firms haven't capitulated amidst the drop, getting into line with theories put out by respected industry executives.
What’s the theory? And is Bitcoin hashrate remaining high a positive factor?
High-profile investors within the cryptocurrency market like BlockTower Capital chief investment officer managing partner Ari Paul said that investors didn't plan to sell at low $4,000s.
The abrupt liquidation of a billion dollars of long contracts across major cryptocurrency exchanges led to a flash crash-esqe decline to $3,600, margin calling many positions.
That may show that major players within the cryptocurrency market are unlikely to possess capitulated within the quick move down below $4,000.
The conviction of huge Bitcoin holders like the Winklevoss Twins and Galaxy Capital LP CEO Michael Novogratz suggests that whales who haven't sold during the initial drop to the mid-$3,000 region aren't likely to capitulate within the short-term.
Large-scale mining centers are said to possess prepared a minimum of 12 months of mining costs before the block reward halving in April 2020. that would prevent a possible sell-off of massive miners within the upcoming months, which could apply significant selling pressure onto the market in theory.
bitcoin price
The Bitcoin hashrate is unfazed by price crash to $3,600 (source: blockchain.com)
The relative stability within the hashrate of the Bitcoin network also indicates that miners remain confident within the long-term price trend of Bitcoin.
Can BTC recover by the year’s end?
Much of the sell-off within the cryptocurrency market was caused by the frantic selling of stocks within the U.S. and Europe as fear towards the coronavirus pandemic intensified.
That means that if the U.S. and European equities market begin to recover within the upcoming months because the expansion of the coronavirus outbreak slows down, it could potentially revive the appetite for crypto assets including Bitcoin.
While the arrogance within the government of the U.S. to contain the coronavirus outbreak has declined noticeably since early March, the progress shown by China, South Korea , and Singapore has demonstrated that it's possible to eradicate the virus.
Balaji Srinivasan, former Stanford professor and highly-regarded researcher with papers in clinical and microbial genomics, said:
The hashrate of the Bitcoin blockchain network barely flinched because the price of BTC plummeted to $3,600, by around 50 percent within a 24-hour span. it's going to indicate that big mining firms haven't capitulated amidst the drop, getting into line with theories put out by respected industry executives.
What’s the theory? And is Bitcoin hashrate remaining high a positive factor?
High-profile investors within the cryptocurrency market like BlockTower Capital chief investment officer managing partner Ari Paul said that investors didn't plan to sell at low $4,000s.
The abrupt liquidation of a billion dollars of long contracts across major cryptocurrency exchanges led to a flash crash-esqe decline to $3,600, margin calling many positions.
That may show that major players within the cryptocurrency market are unlikely to possess capitulated within the quick move down below $4,000.
The conviction of huge Bitcoin holders like the Winklevoss Twins and Galaxy Capital LP CEO Michael Novogratz suggests that whales who haven't sold during the initial drop to the mid-$3,000 region aren't likely to capitulate within the short-term.
Large-scale mining centers are said to possess prepared a minimum of 12 months of mining costs before the block reward halving in April 2020. that would prevent a possible sell-off of massive miners within the upcoming months, which could apply significant selling pressure onto the market in theory.
bitcoin price
The Bitcoin hashrate is unfazed by price crash to $3,600 (source: blockchain.com)
The relative stability within the hashrate of the Bitcoin network also indicates that miners remain confident within the long-term price trend of Bitcoin.
Can BTC recover by the year’s end?
Much of the sell-off within the cryptocurrency market was caused by the frantic selling of stocks within the U.S. and Europe as fear towards the coronavirus pandemic intensified.
That means that if the U.S. and European equities market begin to recover within the upcoming months because the expansion of the coronavirus outbreak slows down, it could potentially revive the appetite for crypto assets including Bitcoin.
While the arrogance within the government of the U.S. to contain the coronavirus outbreak has declined noticeably since early March, the progress shown by China, South Korea , and Singapore has demonstrated that it's possible to eradicate the virus.
Balaji Srinivasan, former Stanford professor and highly-regarded researcher with papers in clinical and microbial genomics, said:
No comments