Bitcoin Hashrate Approaches New ATH, What Does It Mean For The Price?

Data shows Bitcoin mining hashrate is now near its all-time high (ATH) set back in April. Here’s what it may mean for the price of the crypto.

Bitcoin Mining Hashrate Nears A New ATH

According to on-chain data, the BTC network hashrate seems to be approaching the ATH it set back in April of this year.

The “hashrate” is an indicator that shows the total amount of computing power connected to the Bitcoin blockchain network.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

On the BTC blockchain, miners compete with each other by solving complex algorithms so that they can handle transactions.

For this purpose, miners require a high amount of computing power. Thus, a high amount of hashrate means there is a lot of power present on the Bitcoin network, which can help the chain perform faster and more efficiently

Also, high values of the indicator may also imply that there are a lot of nodes (that is, miners) connected to the network. Therefore, such values can lead to better decentralization of the BTC network. This helps make the blockchain more secure against any possible attacks.

Get 110 USDT Futures Bonus for FREE!

On the other hand, if a crypto network has low hashrate, the chain may show poor performance, and it might also have worse security.

Related Reading | Why “Bitcoin Creator” Craig Wright Came Out Ahead Despite Having To Pay $100 Million

Now, here is a chart that shows the trend in the value of the Bitcoin hashrate over the past year:

Bitcoin Mining Hashrate

Looks like the value of this indicator has been trending up for a while now | Source:

As you can see in the above graph, the Bitcoin hashrate seems to be advancing towards its previous ATH that was achieved earlier in the year.

When the ATH was set in April, BTC’s price also peaked then. After China’s crackdowns on mining started, the hashrate began to go down, and had collapsed by June.

Since then, the value of the indicator has steadily worked its way back up, and if the trend continues, a new ATH could be there.

Related Reading | Bitcoin Miners Hold Off On Selling As Their Reserves Reach 2021 High 

Earlier some speculated that when the hashrate will make a new ATH, the price of Bitcoin will also follow lead. However, since the bloodbath of November, the coin’s price has rather dwindled down.

Nonetheless, an increasing hashrate has generally been bullish for Bitcoin, which may also be the case this time.

BTC Price

At the time of writing, Bitcoin’s price floats around $47.7k, down 0.5% in the last seven days. The below chart shows the trend in the price of BTC over the past five days.

Bitcoin Price Chart

BTC's price seems to have mostly consolidated in the last few days | Source: BTCUSD on TradingView
Featured image from, charts from,


Tagged : / / / / / / / /

Institutional Bitcoin products tag record AUM despite volume pulling back

Institutional traders have locked a record sum of capital into Bitcoin investment products despite trade volume declining during the second half of 2021.

According to CoinShares’ Nov. 15 “Digital Asset Fund Flows Weekly” report, Bitcoin (BTC) investment products saw total inflows of $97.5 million between Nov. 8 and Nov. 12 — pushing the sector’s assets under management (AUM) up to a record $56 billion. Year-to-date (YTD) inflows also tagged $6.5 billion last week.

Bitcoin instruments represented 64.6% of the $150.9 million that flowed into digital asset investment products last week. While the record AUM coincided with BTC establishing a new all-time high of roughly $69,000 on Nov. 10, the markets have since pulled back by 10% to last trade hands for $62,100.

Despite CoinShares noting that digital asset investment products have seen inflows for 13 consecutive weeks, the sector has posted “subdued volumes” during the latter half of 2021.

According to the report, daily volumes have averaged at $750 million during the second half of the year — a 22% retracement compared to $960 million during H1 2021.

While Ethereum saw the strongest weekly inflows among altcoin-tracking products with $17.3 million, the figure marked a 44% decline week-over-week for the asset class. Despite volume drying up, CoinShares reports a record AUM of $21 billion for Ethereum products while the price of ETH posted record highs near $4,900 on Nov. 10

Cardano (ADA) ranked as a close second, taking in $16.4 million to post a 227% increase in weekly inflows. CoinShares said that it was unable to “identify a discernible catalyst” driving the surging investment into Cardano funds.

Institutional traders have locked a record sum of capital into Bitcoin investment products despite trade volume declining during the second half of 2021.

Related: Bitcoin has stalled, but here’s why pro traders still expect $80K by January

The price of ADA also experienced a significant bounce this week, moving from around $2.00 on Nov. 8 to around $2.36 on Nov 10. However, Cardano’s price tumbled back down to $2.11 on Friday. ADA is still down 46% from it’s September all-time high of $3.09.

Solana (SOL), Polkadot (DOT) and Ripple (XRP) investment products also saw inflows of $9.8 million, $5.2 million and $3.1 million respectively for the week.