Currently, the total crypto market cap is below the $1 trillion marker that it surpassed last month. Moreover, Bitcoin value is struggling to move past $20,000, but for Bitcoin miners, this doesn’t seem to be a problem.
On October 2, the mining hash rate for the reigning cryptocurrency peaked at an all-time high of 240.208 million. This is according to the 7-day moving average, which is seeing a consistent rise over the last few weeks.
Bitcoin’s mining hash rate started increasing in August when prices showed signs of a potential recovery in the short term. The hash rate represents how much computing power is being used to process cryptocurrency transactions, so the increase makes for an interesting development.
Growth of Bitcoin Hash Rate Defies Previous Trends, Miners Optimistic
As the Bitcoin hash rate and price move inversely, it defies previous trends in which both were correlated. Before this occurrence, the hash rate of a digital asset moved in a similar direction as its price.
But it could be that the rising hash rate is a sign of miners’ confidence. One reason for such optimistic sentiments is how many investors are letting go of fiat currencies like the pound and euro and embracing digital assets like Bitcoin and second-ranking cryptocurrency Ethereum. This has led to Bitcoin’s trading volume seeing a three-month high.
Bitcoin Proponents’ Bullish Predictions Fuel Mining Activities
Additionally, there have been some bullish predictions from proponents of the flagship cryptocurrency. For instance, Parallax Digital founder Robert Breedlove thinks that Bitcoin is highly likely to surpass the $12 million mark by 2031. In his opinion, the surge will be due to the fall of the dollar’s purchasing power.
Currently, Bitcoin is trading just below $20,000 at $19,182, which shows a 0.56 percent decline since yesterday. Nevertheless, it has improved by 1.06 percent over the last week. The Bitcoin market cap is around $467.68B, so it continues to rank as the biggest digital currency by a huge margin.
Upcoming Financial Stability Oversight Council Meeting Could Affect Landscape
While Bitcoin prices have been calm this past week, the upcoming meeting presided by Treasury Secretary could affect future trends. According to the department, the main plan for the meeting includes getting an update from the CFTC on energy market developments and financial stability, as well as the Federal Reserve.
Based on previous trends, such federal meetings between US financial authorities lead to increased volatility in the crypto market. Considering how today’s meeting was an urgent session, it’s likely that further fluctuations can occur.
Aside from Bitcoin, other digital currencies are feeling the pressure as well. Ripple, which was doing well over the last couple of weeks thanks to positive momentum from the latest case developments, saw a price drop of over 7.5 percent.