TL;DR
Usually when the Bitcoin hash fee bottoms out, so does the worth of BTC – and proper now, it appears just like the Bitcoin hash fee has bottomed out.
Full Story
There’s tea leaves, there’s astrology, after which there’s the Bitcoin hash fee.
None of them are an ideal indicator of the longer term, however some imagine they’re fairly shut.
We don’t know an excessive amount of about tea leaves or astrology, however right here’s what the Bitcoin hash fee is:
The hash fee is a measure of the overall computational energy utilized by Bitcoin miners to course of transactions and safe the community.
(Which by extension signifies how simple or tough it’s to mine BTC).
Proper now, Bitcoin’s whole hash fee has declined to 556 exahashes per second (EH/s), down from 658 EH/s in late Could.
In consequence, the Bitcoin community has mechanically adjusted its block-mining issue down by 7.8%.
What does this all imply?
Briefly, sometimes when the Bitcoin hash fee bottoms out, so does the worth of BTC.
Lengthy story longer: if the worth of BTC will increase, transaction charges may even enhance. As transaction charges enhance, mining turns into extra worthwhile, motivating miners to contribute extra computational energy, growing the Bitcoin hash fee.
Is a bottomed out hash fee an ideal indicator that the worth of BTC is about to rise?
Completely not!
However we certain hope issues bounce again up.
