More and more robust – Our article of January 17, 2022 details the reasons why a capitulation of bitcoin (BTC) miners would only be possible if the price of the cryptocurrency approaches or falls below $34,000. The price of bitcoin has remained above that level ever since, and the network appears to be immune to a potential mass miner exit for the time being.
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New record for Bitcoin: a network in top form
On February 12, 2022, the Bitcoin hash rate recorded a new all-time high at 248.11 exahashes per second (EH/s). This rate jumped 31.69%, from 188.40 EH/s to 248.11 EH/s, in the space of just one day.
These figures show a strengthening of the security of the network, while the price of bitcoin has remained stuck around $42,000 since February 12, 2022, after having approached $46,000 during the week of February 7, 2022. The uncertainty that reign over the markets as to a possible sustainable bullish recovery does not seem to be of particular concern to miners at the moment, however, in view of this explosion in the network hash rate.
This spike in Bitcoin’s hashrate also comes against a negative macro backdrop for financial markets in general globally, including rising inflation and heightened geopolitical tensions between Ukraine and the United States. Miners continue to ramp up their activities seemingly unaffected by these relatively worrisome environmental factors.
On the technical side, data from BTC.com indicates that bitcoin’s mining difficulty should increase by 3.24% at the next readjustment of its value which will take place during the week of February 14, 2022.
Bitcoin’s hash rate had suffered significant declines in 2021, after the forced exodus of miners from China following the country’s ban on bitcoin mining. It is unlikely for the moment that other nations will follow this example in 2022. Even the Russian central bank which had tried to ban all activities related to cryptocurrencies, including mining, did not succeed in making accept such restrictions by other institutions in the country. The Russian Chamber of Commerce, for example, has made it clear that it wants bitcoin mining, and fast.
Bitcoin is getting stronger and stronger, ignoring some worrying macro backdrops. To take your first steps in bitcoin and cryptocurrencies: Register without delay on the FTX reference crypto exchange platform and benefit from a lifetime discount on your trading fees (affiliate link, see conditions on official website).