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Bitcoin hash rate soars ahead of halving

As bitcoin rapidly approaches its mining rewards halving, the top crypto is exhibiting unprecedented signs of both technical and fundamental strength.

Not only has the benchmark crypto been able to post a major rebound from its mid-March lows of $3,800, but it has also been able to form greater fundamental strength – as seen by its hash rate reaching fresh all-time highs, Cryptoslate reported.

Further adding to the growing list of factors counting in the bulls’ favor is the fact that investors are continuing their “flight to safety” as the Covid-19 pandemic shows few signs of subsiding anytime soon.

Bitcoin’s hash rate just hit a fresh all-time high, coinciding closely with its extremely bullish price action in the period following its mid-March meltdown.

Research and analytics platform Glassnode spoke about this key network metric’s growth in a recent tweet, offering a chart showing the tremendous growth it has seen in recent times.

Image Courtesy of Glassnode

It is important to keep in mind that the halving will lead to a temporary decline in hash rate due to its catalyzing capitulation amongst miners.

Smaller operations that rely solely on their minted BTC to fund their operations will be particularly impacted by this event, as its impact on their profitability will be quite significant.

For the larger miners that continue supporting the cryptocurrency’s network after this event takes place, the reduction in block mining rewards will likely incentivise them to hold their crypto until BTC’s price climbs higher, thus alleviating some of the selling pressure placed on bitcoin in the near-term.

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