The decline in Bitcoin (BTC) hash rate has reached the level of December 2022, when virtual asset exchange FTX went bankrupt.
According to CryptoQuant data, the current BTC hash rate decline is -7.6%. This is the same amount as the decline in BTC hash rate after FTX went bankrupt in December 2022. FTX, the world's second-largest virtual asset exchange, went bankrupt in December 2022 after a liquidity crisis. Immediately after the bankruptcy, the virtual asset market continued to plummet, and the BTC hash rate decline reached an all-time low.
BTC hash rate is a unit that measures the computational processing speed of miners and is used to determine mining activity and overall network status in the proof-of-work (PoW) blockchain. A decline in this indicator means that the computing power used for BTC mining has also decreased.
The reason why the BTC hash rate has recently decreased significantly is because miners sold large quantities of BTC as the burden of operating costs increased following the fourth halving. Mining companies are stopping mining as it is becoming difficult to handle the worsening profitability.
Some analyze the decline in BTC hash rate as an opportunity to buy BTC. Charles Edwards, founder of virtual asset hedge fund Capriol, analyzed that the BTC hash ribbon indicator developed by the company is showing a buy signal, reflecting the relative slowdown in network computing power. Cointelegraph recently reported that BTC miners' withdrawals have decreased by up to 90%, and selling pressure is gradually decreasing.
- Reporter Lee Yeon-ju
- juya@rni.kr
< Copyright ⓒ Decenter, unauthorized reproduction and redistribution prohibited >
