Bitcoin Network Hash Rate Reached a New All-Time High

Security is one of the most important things when it comes to a network. With higher security, it becomes more resilient, and it is harder to attack it.

This is where the Hash Rate comes in the crypto world. It means the sum of all computing power of a network through crypto mining, such as the Bitcoin network. 

Crypto mining is the process through which miners (computational power) verify transactions and secure the network. That is why if more computing power is contributed, it will be more secure. 

On February 12, the Bitcoin network Hash Rate reached a new all-time high of 248.11 million terahashes per second (TH/s). In the last hours, the Bitcoin Hash Rate has been around 209.6M TH/s, according to Blockchain.com data.

Does the Bitcoin Hash Rate Reflect on BTC Price?

The next chart shows the BTC’s price and the Bitcoin’s Hash Rate since January 2021, according to the Bitcoin on-chain analyst Willy Woo.

In April 2021, the BTC Hash Rate dropped from 198.514M TH/s to 106.676M TH/s, a 46% decline, and the BTC price fell by 23% from $63,600 to $49,040. In May 2021, China banned crypto mining and the BTC Hash Rate fell from 190.552M TH/s to 58.461M TH/s, a 69.3% decline, and the BTC price fell by 49.3% from $58,770 to $29,780, as you can see below:

After China’s news, BTC’s price recovered and reached a new all-time high in November 2021 of almost $68k and started declining until late January 2022. But, when it comes to BTC Hash Rate, it keeps rising reaching new all-time highs as you see above. 

Since late January, both price and Hash rate has been on the rise.

What’s Been Happening With the Crypto Mining Industry?

Last month, Intel, the giant manufacturer of semiconductor computer circuits, entered the BTC mining space with the release of a new mining equipment named Bonanza Mine.

Erik Thedeen, the vice-chair of the European Securities and Markets Authority (ESMA), made a call to ban crypto mining in the European Union (EU). 

A number of countries are experiencing energy crises, such as Kazakhstan and Kosovo, which are affecting cryptocurrency mining.

It looks like European countries are not in favor of crypto mining. As of August 2021, University of Cambridge data showed the U.S. controlled 35.40% of the total Bitcoin Hash Rate, being the largest after the China news.

The BTC Hash Rate and BTC’s price are not always correlated, but the Hash Rate gives important metrics as well as network strength. Let’s see what the price of BTC will do, based on its fundamentals.