Bitcoin’s price may have been consolidating within a very narrow range over the past couple of weeks, but it’s hashrate does no such thing. It’s been on the rise for quite a while and charts new all-time highs regularly.
Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence, reveals that BTC is currently at its greatest discount to hashrate since the second quarter of 2020.
- Bitcoin’s price is currently hovering over $19,000, charting absolutely no change compared to 24 hours ago. Zooming out reveals that BTC has been trading in a relatively tight range between $18K and $24K for the past couple of months, completely unable to escape in any direction.
- However, according to Mike McGlone, the cryptocurrency “may be entering an inexorable phase of its migration into the mainstream, and at a relatively discounted price.”
Bitcoin’s advancing hash rate may reflect the crypto leader’s increasing adoption, dominance, and price bias. Our graphic depicts the 10day average of this measure of Bitcoin’s network computing power from CoinMetrics reaching a new high in October, roughly equivalent to the crypto price around $70,000 on an autoscale basis since 2015.
At about $19,500 on October 18th, Bitcoin’s relative discount to its hash rate was last matched during the 1Q20 swoon, when the closing low was about $5,000. We see a similar price foundation forming now. The
- At the time of this writing, Bitcoin’s hashrate is close to its all-time high, according to data from BlockchainCom.
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