Bitcoin price remains volatile despite hashrate reaching historic levels
Even after slipping to a 6-month price bottom a little over a week ago, Bitcoin’s network growth has continued at a remarkable rate.
- Experts believe that BTC needs to hold on to its $37,000 resistance to regain any sort of bullish support.
- Bitcoin’s relative strength indicator (RSI) suggests that the asset is currently “oversold” and that more investors could soon make their way into the market.
- Meta recently filed documents with Brazilian trademark authorities to develop a suite of Bitcoin-related products, including wallets, a trading platform and more.
After seemingly having broken out of its bearish price trap by scaling up to a relative high of $38,200, Bitcoin (BTC) has corrected once again, dipping by a little over 3% over the last 24 hours. At press time, the flagship is trading at $38,456.
Analysts such as Michaël van de Poppe noted that the surge was largely driven without any sort of “traditional market guidance.” He also claimed that over the coming few weeks, the digital asset could continue to face monetary turbulence, especially if BTC fails to hold tight to its all-important $37,000 price resistance.
Technical on-chain data suggests that a positive breakout may be on the cards for Bitcoin since its RSI has continued to hover in the “oversold” region for many weeks running. The metric sits at its highest levels since March 2020 — a time when the market was in full panic mode due to the onset of the coronavirus pandemic.
Bitcoin hashrate continues to climb despite waning price action
Despite hitting a six-month low on January 21, Bitcoin’s network has continued to grow from strength to strength, with its hashrate recently scaling up to an all-time high of 26.643 trillion — registering an average value of 190.71 exahash per second (EH/s).
In fact, most industry experts are confident that this trend will continue into the future as investors continue to see the damaging effects of the Fed’s lax monetary policies that have been in place over the last couple of years.
On the subject, Darin Feinstein, co-founder of blockchain infrastructure provider Core Scientific, pointed out that following the great Chinese miner exodus of 2021, Bitcoin’s network capacity proceeded to grow by a whopping 200%. Feinstein added:
“The Bitcoin network one year ago was approximately 143 EH/s. Following the mining ban in China, the network fell to 63 EH/s. Today, the hash rate has grown to approximately 198 EH/s. This recent increase represents … 130 EH of new hosting infrastructure and primarily new generation hardware deployment … in geographic regions that use far cleaner energy than the energy used in China.”
Meta doubles down on its Bitcoin dev efforts in Brazil
Global multinational Meta, which owns a bulk of the world’s most well-known social media platforms, has filed a trademark registration with relevant authorities in Brazil to devise a suite of Bitcoin-based services. The submitted document says that Meta looks to release various products in the near- to mid-term, including a trading ecosystem featuring a number of wallet solutions as well as a crypto exchange.
Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.
