bitcoin's hash rate, that is, the network's computing power, recently hit a new all-time high amid the frenzy that came with the bitcoin-etf-approvals-crypto-bull-run-next/” target=”_blank” rel=”nofollow”>bitcoin Spot ETFs Debut in the U.S. According to data from In the blockbitcoin hashrate hit an all-time high of 630.91 million TH/s or 630 EH/s on January 11, less than 24 hours after the US Securities and Exchange Commission approved 11 bitcoin ETFs on counted in the country.
bitcoin hash rate hit a new all-time high yesterday
https://t.co/bkdHCcEXFk pic.twitter.com/Mn3GxyDp6d– IntoTheBlock (@intotheblock) January 12, 2024
bitcoin hashrate hits all-time highs
Hashrate measures the total combined computing power used to mine new bitcoins and process transactions. The bitcoin mining hashrate has been steadily increasing since 2021, regardless of market sentiment, whether bullish or bearish, cementing bitcoin as the most secure cryptocurrency network. According to information provided by Coinwarz, the hashrate started 2023 at 266 EH/s and ended the year at 598 EH/s, a growth of 125%.
The hashrate skyrocketed further to an all-time high of 630 EH/s on January 11, and the timing was no coincidence. The rise in hashrate came just after the SEC approved the first US bitcoin spot ETFs to open the doors for mainstream investors to invest in major cryptocurrencies without actually owning the asset.
https://x.com/intotheblock/status/1745826801106956323?s=20
bitcoin hash rate hit a new all-time high yesterday
https://t.co/bkdHCcEXFk pic.twitter.com/Mn3GxyDp6d– IntoTheBlock (@intotheblock) January 12, 2024
Unsurprisingly, the approval of these ETFs sparked a flurry of activity in bitcoin, pushing its chain volume to its highest level since the collapse of the FTX crypto exchange. Consequently, the hashrate also increased, indicating that miners are stepping up their operations in anticipation of increased interest and trading volume that often follows the launch of new ETFs.
BTCUSD currently trading at $42,984 on the daily chart: TradingView.com
btc price drop and mining profitability
The approval of spot ETFs is a sign of widespread acceptance that strengthens bitcoin's credibility. Despite increasing trading volume and network growth, bitcoin price appears to have deviated from this positive trend. The crypto price initially reacted positively to the approval of spot ETFs, pushing him $48,600, its highest point since April 2022. In a dramatic turn of events, this peak has since reversed, to give the notion of a “sell the news event.”
At the time of writing, bitcoin has retreated 11% from this local high and is trading just above $43,000. Trading volume also fell by 62% in the last 24 hours.
bitcoin mining profitability, which saw steady growth in December, did not react positively to the approval of spot ETFs. According to data from bitcoin-hashprice-index” target=”_blank” rel=”nofollow”>Hashrate indexThe drop in bitcoin prices led to mining profitability falling to as low as $0.07958 per terahash/second per day on January 13, a 22% decline from $0.10270 per terahash/second per day on January 1 .
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