Bitcoin price drops, but Bitcoin network hashrate remains around 100Eh/s

Despite the recent drop in cryptocurrency prices, Bitcoin's total network hash rate remains high. Well-known cryptocurrency analyst PlanB recorded the moment when the hash rate exceeded 100Eh/s recently and posted a screenshot of the data from the getmininginfo service on Twitter.

Likewise, if we look at another piece of data from BTC.com, the same indication is that the total network hash rate is around 90Eh/s.

According to a user nicknamed Hodlonaut, the Getmininginfo service does not provide accurate data on the actual hashrate of the network. Getmininginfo is useless for getting the actual hashrate. The variance jumps around like crazy because it uses too short a time span to measure. Even when measured on a daily average weight, it jumps around like crazy. ”

Bitcoin's hash rate fluctuations in 2019

In June of this year, when Bitcoin was $14,000, the total network hash rate was increased from 59 EH/s to 100 EH/s in 2019. So far, Bitcoin has dropped to $7,000, but the total network computing power has almost doubled.

According to Blockchain.com, the highest total network computing power in Bitcoin history occurred in October. The maximum total network hash rate on October 23 this year was 114 EH/s. According to Blockchain.com, the current total network computing power of Bitcoin is 90.5 EH/s. This figure is 21% lower than the peak.

The steady growth in computing power suggests that the fall in Bitcoin prices has not stopped miners from entering. Although at this stage, some low-end ASIC models, such as the Antminer S9 series, are already unprofitable. The breakeven point for the Antminer S9 is $7,500. Perhaps, players in the space are betting on a long-term rebound in cryptocurrency prices, including the post-halving period in 2020.

The relationship between Bitcoin and hashrate difficulty

There is a possibility that the price will continue to fall. Peter Schiff, a well-known Bitcoin critic and CEO of Euro Pacific Capital, believes that the cryptocurrency is moving within the framework of the head and shoulders technical analysis data. Peter Schiff pointed out that the correction is likely to be completed at the $1,000 level. Bitcoin is already close to the area of ​​the "head and shoulders" Bitcoin that I launched on October 25 with a 40% correction. The right shoulder is now shrugged and the neck is tilted, parallel to the shoulder. If it breaks the established price target, there will be a wave of $1,000 correction.

— Peter Schiff (@PeterSchiff) November 21, 2019

At the same time, a participant in the cryptocurrency community noted that Peter Schiff’s previous negative predictions about the cryptocurrency exchange rate, on the contrary, contributed to the positive growth of the Bitcoin price.

Morgan Creek Digital co-founder Anthony Pompliano took advantage of the price drop in the digital asset market to buy cryptocurrencies. He shared this information with his followers on Twitter.

As for Bitcoin’s total network hash rate, in early September this year, the Bitcoin hash rate dropped by 30% in one day. This was due to increasing pressure from China on mining companies and the arrival of the dry season. At that time, the cryptocurrency depreciated sharply from $10,000 to $7,800.

China has not officially banned cryptocurrency mining. But there has been other bad news coming from the region, such as surveillance and heavy-handed regulation of virtual currency exchanges. The cryptocurrency market then saw a similar crash, with prices falling below $7,000.