Bitcoin’s hashrate dropped from 133.29 EH/S, the highest since the start of 2020, to 108.16 on 12th March, when the price of the leading cryptocurrency plunged below $4,000. Since then, the hashrate has been continuously falling as miners face tough times to continue their operations. On 4th April, hashrate was at 96.9888EH/S, an increase in hashrate must be accompanied by an increase in the price of bitcoin for miners to maintain healthy profit margins.
Bitcoin miners continue to suffer
The crash in the price of bitcoin has most affected the small mining firms as they are not able to bear the expenses and have shut down, which is resulting in all the big miners monopolizing the industry. When the price goes down, miners have to sell their profits to pay for expenses like electricity and mining rigs. This also forces them to sell their bitcoins if they don’t have profits which creates a strong pressure on the network.
How dropping hashrate could affect BTC price?
The constant drop in the hashrate of bitcoin’s network could prove to be quite bearish for the price of bitcoin as miners fail to turn profits, which forces them to shut down. At the time of writing, bitcoin is changing hands at just above $7,100, but the short-term prediction is still quite bearish. According to a report published by the crypto firm Tradeblock, BTC prices had to reach at least $12,500 by the time the network halves, or they might suffer as the revenues will be chopped in half instantly. The bitcoin halving is scheduled to take place in May this year.