The Bitcoin hash rate fell in the year, although the price remains virtually unchanged.
Although the Bitcoin hash rate (BTC) has experienced a sharp drop in recent weeks, Blockchain.com’s head of research, Garrick Hileman, is not concerned.
Blockchain.com was founded in 2011 by dissident members of another Coinbase cryptomorphic exchange.
It was one of the first Bitcoin analysis providers, eventually expanding its services to include a non-custodial portfolio, currency exchange and cryptomore-lending platform.
The company also coined the term „hash rate“ as a metric that „estimates [the] number of terahashes per second that the Bitcoin network is performing“.
The Bitcoin hash rate tends to be highly volatile. It fell to the lowest point of the year – 76 million TH/s on March 25 before setting an all-time high after halving. This latest trend culminated in a hash rate of 161 million TH/s on September 25th.
One month later, however, this trend was reversed, with the hash rate falling to 95 million TH/s on October 27. While the ultimate cause remains unknown, some have suggested that the most recent fall was caused by the seasonal migration of Bitcoin miners in China .
In an interview with the Cointelegraph, Hileman explained that he does not necessarily see the fall as a cause for concern:
„The hash rate is obviously substantially higher than it was before halving. So for me it is not a major concern. It is an interesting fact. But we have seen other falls since halving that in terms of percentage falls look more or less similar. So it may just be noise or something that is not so significant, but it is something to monitor for sure. ”
The hash rate has recovered slightly in recent days to 107 million TH/s. It is still down in the year, having entered 2020 with 111 million TH/s. Although historically the price and the hash rate exhibit a strong correlation, the most recent decline in the hash rate does not seem to have impacted the price .