Among other advantages, Bitcoin is a gigantic step towards more transparent financial markets. In addition to the transaction process, indicators such as the hash rate can also be read on the blockchain. Time to take a look under the hood.
Yawn! Bitcoin’s price behavior in this Corona December is anything but volatile. Rather, the number 1 cryptocurrency has been describing a sideways trend since the beginning of the month. Quo vadis, Bitcoin? A look at the data situation.
First of all: you don’t have to worry about the hash rate depending on the current situation. It is true that the accumulated computing power in the network lost significant momentum at the end of October. In the meantime, however, the miners are back on board and supply Bitcoin with sufficient energy. According to market observers, the slump in October this year was due to the end of the rainy season in Sichuan. Miners operate their Bitcoin mines in southwest China’s province with electricity generated from hydropower. If there is no rain, the water level in the dams drops and electricity becomes more expensive. This usually urges the miners to change locations, which can also be seen in the hash rate.
The hash rate is currently heading for a new all-time high. At the time of going to press it is 137 exahashes per second (EH / s) and is only around 6 percent behind the all-time high at 146 EH / s. An all-round bullish signal.
Sideways walks like this may not be productive for observers. However, they are essential for the long-term price development. Bitcoin was overheated after its rally in November, which even manifested itself in a new all-time high. The setback to just under 18,000 US dollars (USD) on December 9 can safely be seen as a healthy price correction.
For example, if you take a look at the Active Addresses Sentiment, you will notice that BTC has been trading in the “red zone” for some time, more precisely since October 19. If the Bitcoin price rises too quickly in too short a time, it cannot be supported by the growth of active addresses, a price correction is likely.
How big Bitcoin has already become can now also be seen in the transactions. 250,000 to 300,000 BTC change addresses every day. At a market value of around 18,500 US dollars, that’s between 4.6 and 5.5 billion US dollars per day that the network processes.
This makes BTC the largest decentralized money network in the world. Even if BTC did not cause a stir for a while, the crypto currency has worked perfectly since its genesis — and transports ever larger sums of money.
And another note for bitcoiners with a bearish mood: Crashes and price setbacks do not last long in bull markets. If you take a look at the profitable Bitcoin days, you will notice that it was currently a good idea to invest in cryptocurrency on 99.6 percent of the days. The rate was only higher than today on 16 days.
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Disclaimer: These lines are not a substitute for investment advice, investments in the crypto market are made at your own risk. Invest only as much as you are willing to lose. I get commissions for purchases made through links in this post.