Three months ago, a market crash that led to a 50 percent decline in the price of Bitcoin within 24 hours as global markets collapsed made numerous people think the top cryptocurrency was on its way out.
After the incident, some Bitcoin miners could not cope and had to shut down their machines massively due to unprofitability. However, in recent times, network data has suggested Bitcoin’s fundamental strength like never before.
In recent times, it was discovered that Bitcoin network’s hash rate is increasing despite the stalling market. According to cryptocurrency data company TradeBlock, on July 7, the 7-day moving average of the measure attained a lifetime high of over 124 exahashes per second. The value is two times what it was a year ago and 1,000 percent more than the hash rate when BTC price attained its lifetime high (close to $20k).
This is coming as more cryptocurrency miners are investing worldwide. In an announcement on July 6 by HIVE Blockchain Technologies, based in Vancouver, it has ordered 200 Bitmain Antminer S17e 60 Terahash per second (TH/s) SHA 256 mining machines towards the improvement of its green energy-powered bitcoin mining operation in Quebec. The firm plans to activate those machines in the coming three weeks.
The bigger investment was made by Core Scientific, a blockchain and artificial intelligence hosting provider based in the U.S. According to Forbes, Core Scientific obtained 17,595 new Bitmain Antminer S19s, with the claim that it is the largest shipment of such machines to the United States ever.
The summer rainy reason is China is also favoring Bitcoin mining because cryptocurrency mining happens majorly in China. Power is cheaper as more rain falls in areas where hydroelectricity is common.
Based on an analysis regarding the correlation between the health of Bitcoin miners and the price action of Bitcoin, some market participants suggest BTC’s rally to and possibly above $10k.