The discrepancy between Bitcoin’s price and its hash rate, or the network’s total computing power, could lead to a rise in the price of the largest digital asset, CoinDesk reported on Sept. 21.
Historically, these divergences have only occurred a few times in the past three years. In some cases, the bitcoin price bottomed out during these events, followed by a rebound as the market caught up with the rising hash rate. The bitcoin network’s hash rate rises and falls based on how many miners’ mining computers are online validating transactions.
Consistent with this pattern, Bitcoin has shown signs of recovery, gaining around $9,000 since bottoming on Sept. 6. This divergence between Bitcoin’s price and its hash rate began to form in July and then continued into early September, when the network’s computing power reached an all-time high of 693 EH/s on the seven-day moving average, while Bitcoin’s price approached $54,000.
