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According to recent blockchain data, Bitcoin’s hash rate has been on the rise as it reached a new all-time high on Friday, January 3, 2025. This new peak comes as the major cryptocurrency continues to recover after a disappointing end to 2024. .
Positive relationship between Bitcoin price and hash rate
“Hash rate” is a metric that measures the total computing power that secures a proof-of-work blockchain network (Bitcoin, in this case). It is used to determine blockchain mining difficulty and measure network engagement.
When the hash rate metric increases, it indicates that Bitcoin miners are devoting more computational resources to the network, and as a result the blockchain becomes more secure. Meanwhile, a low hash rate indicates low network sharing and reduced security.
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On Friday, Bitcoin’s hash rate briefly reached a new record high of over 1,000 exahashes per second (EH/s). According to the latest on-chain data, the hash rate has returned to around 783.02 EH/s, as of this writing.
Data from CoinWarz shows that this is a new all-time high for Bitcoin’s hash rate at nearly double its value a year ago. As of January 2024, the BTC network hash rate is around 510 EH/s.
From a historical point of view, there is a positive relationship between the network hash rate and the price of Bitcoin. For example, large hash rate increases during the 2017 and 2021 bull cycles overlapped with large price rallies.
Moreover, a high hashrate indicates strong network fundamentals, which could improve sentiment surrounding the leading cryptocurrency. While this may not lead to immediate increases, it can contribute to price growth over time.
As of this writing, Bitcoin’s price is around $98,264, reflecting a roughly 2% increase over the past 24 hours. This upbeat one-day action adds to a rather positive weekly performance, with the major cryptocurrency up nearly 5% in the past seven days.
US mining pools now account for 40% of global hashrate: report
A new report has been issued open The United States accounted for more than 40% of Bitcoin’s global hashrate at the end of 2024. Specifically, two US-based mining pools, Foundry USA and MARA Pool, were responsible for more than 38.5% of all blocks mined.
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TheMinerMag report showed that Foundry USA improved its hash rate from 157 EH/s at the beginning of 2024 to nearly 280 EH/s by December to become the largest single mining pool in terms of hash rate. Meanwhile, MARA Pool represents about 4.35% of global hash power.
While this represents significant growth for the US Bitcoin mining industry, mining pools based in China still control the majority of the overall hashrate. Despite the ban on cryptocurrencies in the country, Chinese mining pools It controls 55% of the global hash rateAs of September 2024.
Featured image from iStock, chart from TradingView
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