Bitcoin’s hash rate, the measure of the network’s computing power, recently reached a new all-time high. This surge in hash rate coincided with the debut of spot Bitcoin ETFs in the US. Data from IntoTheBlock reveals that the Bitcoin hash rate reached an all-time high of 630.91 million TH/s or 630 EH/s on January 11, less than 24 hours after the U.S. Securities and Exchange Commission approved 11 Spot Bitcoin ETFs in the country.
The hash rate is a measure of the total combined computational power used to mine new bitcoins and process transactions. The Bitcoin mining hash rate has been on a steady rise since 2021, irrespective of market sentiment, thus cementing Bitcoin as the most secure cryptocurrency network. Coinwarz data shows that the hash rate started 2023 at 266 EH/s and ended the year at 598 EH/s, marking a 125% growth.
The hash rate spiked further to an all-time high of 630 EH/s on January 11. This surge in hash rate came right after the SEC approved the first US Bitcoin Spot ETFs, opening the doors for mainstream investors to invest in the top crypto without actually owning the asset. The approval of these ETFs led to a frenzy of activities in Bitcoin, pushing its on-chain volume to its highest since the collapse of crypto exchange FTX. As a result, the hash rate also increased, indicating miners are ramping up operations in anticipation of increased interest and trading volume that often follows the launch of new ETFs.
Despite the increase in trading volume and growth of the network, Bitcoin’s price seems to have deviated from this positive trend. The crypto’s price initially reacted positively to the approval of the spot ETFs, pushing it over $48,600, its highest point since April 2022. However, this spike has since reversed, giving the notion of a “sell the news event.” At the time of writing, Bitcoin has retraced 11% from this local high and is trading just above $43,000. Trading volume has also fallen by 62% in the past 24 hours.
Bitcoin mining profitability, which saw steady growth in December, has failed to react positively to the approval of spot ETFs. Data from Hashrateindex shows that the drop in Bitcoin prices led to mining profitability falling to as low as $0.07958 per terahash/second per day on January 13th, a 22% decline from $0.10270 per terahash/second per day on January 1.
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This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Hashrateindex, U.S. Securities and Exchange Commission, IntoTheBlock, NewsBTC, FTX, Coinwarz |
| Currencies | Bitcoin, united states dollar |
| Securities | None |
