What does the bitcoin power surge mean?

BTC's computing power reproduces the bull market, soaring 40% during the year, is it…

During the May Day holiday, Bitcoin’s “spring breeze” broke through $5,800, a new high for the year. As the price increases, the bitcoin computing power (hash rate) has also been rising, and is now close to the peak power of the bull market last year.

Blockchain.com data shows that bitcoin computing power reached 58 million TH/s on May 2, which means that bitcoin computing has soared nearly 40% since this year, a new high since October 2018, and distance history The highest point is only about 6% of the gap.

Bitcoin computing power reached 60.08 million TH/s on September 24, 2018, but fell to 31.99 million TH/s on December 2 of the same year.

The power (also known as the hash rate) is a measure of the processing power of the Bitcoin network. That is, the speed at which the computer (CPU) calculates the output of the hash function. Bitcoin networks must perform intensive mathematical and encryption related operations for security purposes. For example, when the network reaches a hash rate of 10Th/s, it means that it can perform 10 trillion calculations per second.

In addition to computing power, the number of confirmed transactions in the Bitcoin network reached 450,000 on May 2, setting a new 15-month high. The last bitcoin confirmation transaction peaked in December 2017, when the number of transactions was close to 500,000.

What does the increase in bitcoin computing mean?

The dramatic increase in bitcoin computing means that the difficulty of mining increases (as shown below), and on the other hand it means an increase in mining interest.

According to Crypto Potato, the more miners, the higher the power. On the contrary, the decline in computing power also means that the profitability of the mine will decline, and there will be a phenomenon that the mining machine is slow-moving and the mine is shut down. Recently, with the recovery of bitcoin computing power, miners' interest in mining is gradually increasing.

In addition, there is a certain correlation between the computing power and the price of Bitcoin. From the end of 2018 to the beginning of 2019, the price of bitcoin has fallen below the threshold of 6000, 5000 and 4,000 US dollars.

At that time, Bitcoin’s computing power also experienced a cliff-like decline, and it remained in a state of low volatility from the end of 2018 to the beginning of 2019.

This shows that there is a positive correlation between bitcoin power and price. If the current bitcoin power can maintain its current high or continue to climb, the price of Bitcoin is expected to rise further.

Although the Tether-Bitfinex crisis triggered a brief decline in Bitcoin, the market value of Bitcoin exceeded $100 billion, which also led to an increase in the entire cryptocurrency market. After Bitcoin broke through the $5,800 mark, the next resistance level was the $6,000 line.

Author: Long Yue, please indicate the source

Source: Shallot blockchain

We will continue to update Blocking; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Webster's rating is constantly changing, asserting that Cardano is far stronger than EOS

Source: Shallot blockchain Weiss Ratings, a cryptocurrency rating agency, recently said that Cardano (ADA) is far str...


Bitcoin, Ethereum, Solana, Binance Coin, XRP, Cardano, Avalanche, Dogecoin, Chainlink, Polkadot price analysis for 2/16

Bitcoin's strong upward momentum may encounter resistance around $52,000, but any potential decrease is expected to b...


Cardano Price Surges 8%: Here’s Why ADA Could Reach New Highs in 2024

In the past 24 hours, the Cardano price has experienced a significant increase of over 8% and is currently at $0.6202...


Why does the US SEC, which has clearly classified more than a dozen tokens as securities, continue to avoid addressing the status of ETH?

As an intermediary for daily transactions and investment tools, L1 tokens need clear regulation, which is not only be...


Analysis and Commentary: The Fate of Bitcoin ETFs and Cryptocurrency Performance

After a period of significant growth in the crypto market, traders were briefly shaken by a report causing a halt in ...


Cardano (ADA) Adoption Surge: A Bullish Sign for Future Price Levels 🔥💰

Exciting possibilities lie ahead for Cardano (ADA) as it shows promising signs of surpassing current price levels, ba...