BTC Price: Fundamental metrics strengthen
The crypto pump of today might be dedicated to the altcoins, but on-chain BTC indicators had been proving continuous enhancement during the last year. BTC attains a two-month maximum, the same as hash levels are at historic maximums, but does it interdepend?
One of the positive signs of digital prosperity was always the hash speed. It contributes to increasing network safety and capacity for a more extended time, which is bullish, as a result. Worth to note that the hash speed is not directly correlated to the price in the shorter period.
From January last year and till now, the BTC hash rate has increased by approximately 180%. For instance, very close “relatives,” such as BTC Cash and BTC SV, could not show amazing statistics about the hash level.
LongHash has been studying data to observe the interconnection among such indicators and BTC prices.
Since January 1, 2019: the difficulty jumped to 133%, the hash level is approximately 180%, and the price increased by about 125%. When it happens over the same period, it suggests having interrelation. The same as during the second part of the 2018 BTC price swiftly decreased together with hash speed and difficulty.
Are BTC prices really correlated?
BTC reached the maximum in June 2019 but then started backtrack, which led to a 52% correction from maximum to a minimum on December 18.
Though, the hash speed proceeded to upward together with difficulty throughout those six months’ downtrend. The digital crypto field is based on a long term investment with high primary expenses on equipment and facilities and durable agreements for electricity and placement.
In conclusion, the hash speed is connected with the long term trends rather than bitcoin’s short term wavering in cost.
Will the halving in less than four months influence the BTC hash speed? In theory, it should as lower mining efficiency from 50% block reward lessening. It can squeeze some operations resulting in a diminution in general hash power.
Last halvings showed massive BTC rallies. It led to higher hash powers and more mining investment. This time, the result will highly depend on how the halving affects BTC prices.