Bitcoin Price Surge Possible as Hash Rate Divergence Signals Market Recovery

COINOTAG news, September 21, CoinDesk reported a divergence between Bitcoin’s price and its hash rate, the total computing power of the network, which might result in an increase in the value of the leading digital asset. Historically, such divergences have been rare, occurring only a handful of times over the past three years. During these periods, Bitcoin’s price often bottomed out and then rebounded as the market aligned with the rising hash rate. The fluctuations in Bitcoin’s hash rate are influenced by the number of mining machines verifying transactions on the network. Consistent with this trend, Bitcoin has shown signs of recovery, climbing approximately $9,000 after hitting a low on September 6. This divergence in Bitcoin’s price and its hash rate began forming in July and persisted until early September, when the network’s computing power peaked at an unprecedented 693 EH/s on a seven-day moving average, while Bitcoin’s price was near $54,000.