Cryptocurrency
Bitcoin Crosses $12,100 on Monday on Higher Hash Rate
Bitcoin Gains on Higher Hash Rate on Monday
The world’s most dominant cryptocurrency, Bitcoin, on Monday crossed $12,100 per coin for the first time since July 2019 following the surged in hash rate to 129.03 tera hashes per second (TH/s) over the weekend.
Hashrate measures the computing power miners are devoting to mining blocks.
Price of Bitcoin jumped from $11,261 it traded on Saturday to $11,854 on Sunday after the report became public. The price rose further on Monday during the Asian trading session before breaking through the $12,100 resistance level, below which it has traded since last year.
Understanding the correlation between hash rate and price
Generally, Bitcoin price increased with an increase in hash rate because miners hoard their Bitcoins during rising hash rate. Therefore, reducing the market supply of Bitcoins and automatically boosting price due to the increase in demand for fewer coins.
Also, a higher hash rate indicates the strength of a blockchain network as more miners means better security.