The king of cryptocurrencies is bitcoin. It paved the way for the cryptosphere, which consists of thousands of different cryptos. The Bitcoin [BTC] market was expected to suffer greatly over the final week of September. Investors panicked as the price of the king coin repeatedly fell to $18,000. However, a particular group of investors maintained their composure and saw it as a significant purchasing opportunity. Even though the bear market’s decline has hurt the world’s largest cryptocurrency, one component of BTC appears to be improving. It is unquestionably the hashrate and not the price.
The amount of processing and computing power that bitcoin mining contributes to the network is referred to as hashrate. On October 3, the Bitcoin hashrate was 224.48 EH/s. It rose to 266.9 EH/s yesterday before falling to 244.3 EH/s. But on Wednesday, it bounced back and set a new record high.
CoinWarz records indicate that on October 5, 2022, at block 757,214, BTC’s hashrate reached an all-time high of 321.15 EH/s. The metric’s reading was 297.27 EH/s at the time of publication.
Bitcoin’s dependency on Hashrate
Hashrate growth makes mining more challenging while also exerting tremendous pressure on miners’ capacity to make a profit. Some of the key factors influencing the price of Bitcoin include computing power, the profitability of mining, and network complexity.
The value of the network increases as the Bitcoin network’s computational power increases. However, this will result in a decline in the profitability of the mining industry. The miners may shift their attention to other valuable coins if it continues to rise.
At the time of writing, BTC is up 1.18% in the previous day to trade at $20,205. BTC is currently trading 70% below its record high of $68,789 in value. However, the bear market needs to expire before there is a significant price change.
Other than price increases, BTC has been making other strides. The Bitcoin Lightning Network’s capacity has been continually increasing. On September 29, it passed the 4900 BTC threshold. According to recent data, the layer-2 payments solution can now process more over 5000 BTC.