Bulls dominate the market
The third BTC Halving Event is history, but the consequences keep the crypto space in suspense. Within only 3 days the cops were able to push the Bitcoin up by over 1000 USD. The recent bull run brings the magic 10000 USD mark into sight and many investors predict a bullish future. We take a look at the current market situation.
BTC price after the halving
At the time of writing, Bitcoin is quoted at USD 9499, which corresponds to a daily loss of approximately 1,4 %. The current chart development could represent a consolidation of the past days. The Bitcoin price has survived the halving unscathed and the bulls have done a great job. A price gain of over 1000 USD reflects the mood of investors. This is not clouded by a falling hash rate.
Hash rate falls by over 30 percent
Four days after halving, the consequences of halving the reward become apparent. The hash rate has dropped by about 32% and the network is more vulnerable to 51% attacks. Miners receive “only” 6.25 BTC per mined block. At the same price, mining is no longer worthwhile for many miners.
What is the hash rate?
The hash rate is a measure of the computing power in the Bitcoin ecosystem. To ensure security, the miners make their computing power available so that the BTC network can perform complex computing operations. For this purpose, the hash function must fulfill two main tasks. On the one hand, all hash values should occur approximately equally when trying out different inputs. On the other hand, even the smallest changes must be detected and lead to a new hash value. Already now about two thirds of the total hash rate comes from China. The “Land of the Rising Sun” could even extend this lead in the coming months. F2Pool, BTC.com, Poolin and Antpool form the largest BTC mining pools in crypto space. For a 51 % majority there are no tendencies at the moment.
Correlation to traditional markets declines
After halving, Bitcoin can isolate itself from the major stock markets. This underlines the “digital gold”‘s exceptional position. For investors the low inflation rate of Bitcoin could be a fundamental reason to buy. In the course of the halving, the inflation rate was reduced from 3.64 % to approx. 1.8 %. In difficult times, investors orientate themselves towards crisis-stable value stores. The limited supply is another aspect that distinguishes the BTC from many FIAT currencies. This week, the major stock indices suffered minor setbacks. However, the No.1 crypto currency was not impressed by this.