Cryptocurrencies

Bitcoin Steady Above $11,400 as Hashrate Reaches New High

(CoinDesk archives)

Bitcoin (BTC) is consolidating recent gains alongside a record hashrate that suggests high miner confidence in the cryptocurrency’s price prospects.

  • The top cryptocurrency is currently trading largely unchanged on the day near $11,400, CoinDesk data shows.
  • Prices clocked a high of $11,723 on Monday, having crossed into bullish territory above $11,200 over the weekend.
  • The bitcoin breather comes as seven-day average of the cryptocurrency’s hashrate – a measure of the processing power dedicated to securing and recording blocks on the network – rose to a record high of 144.29 exahashes per second (EH/s) on Tuesday.
  • That surpasses the previous peak of 143.19 EH/s observed on Sept. 18, according to data source Glassnode.
  • Arcane Research said in a tweet the record hashrate is a sign bitcoin’s fundamentals are stronger than ever.
  • Hashrate has increased by nearly 40% this year, despite the “halving” event in May that cut miner rewards by half.
  • A rising hashrate suggests increasing confidence among miners about the economic viability of operations – in effect, more mining machines are coming online as companies invest in the technology.
  • Miners largely operate on cash and liquidate their BTC holdings to fund operations. As such, they are likely to dedicate more resources to the computer-intensive mining process if they are bullish on price.
  • The options market is also aligned for a bullish move, as noted by crypto derivatives research firm Skew.
  • Bitcoin’s call options, or bullish bets, expiring in one, three, and six months are drawing higher prices than the put options, or bearish bets.
  • Analysts expect the cryptocurrency to test the psychological hurdle of $12,000 in the near term.
  • On the downside, support is seen at $11,000, followed by the February high of $10,500.

Also read: Bitcoin Eyes $12K Price After 6-Day Streak of Gains

Related Stories

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Cryptocurrencies Videos

    Crypto Risk Creeps Into $7.1 Trillion Worth of Stocks: MSCI

    The exposure of companies to cryptocurrency could be introducing risks into the portfolios of institutional investors, warns MSCI Inc. Bloomberg’s Dani Burger reports. (Source: Bloomberg)

    1 day ago

    CoinDesk

    CoinDesk is the leading digital media, events and information services company for the crypto asset and blockchain technology community. Its mandate is to inform, educate and connect the global community as the authoritative daily news provider dedicated to chronicling the space. Founded in May 2013, CoinDesk reaches millions interested in blockchain technology thru its website, social media, newsletters, podcasts and video. CoinDesk created the original reference rate known as the Bitcoin Price Index which is widely sourced in the media including The Wall Street Journal, Financial Times, CNBC and many others on a daily basis.

    Learn More