Hashrate vs price chart

[MarzoB]

Hi.

I was looking at the hashrate vs price chart and I am wondering if there actually is any correlation between those two. If hashrate drops significantly do you think it would affect BTC price at all?

In my opinion, even tho halving just occurred we should expect hashrate to be lower, we can still see it is stable, so I guess not so many miners closed their mining farms.

Do you think some of them are currently mining with loss? and if so, should we expect hashrate to drop soon?

[Cryptoababe]

According to my own understanding. Hashrate can be upgraded with kind of mining machine. But  the expenses a miner will need will be much than the ones before halving. Because to be able to get same amount of previously mined coin at same amount of time, they will need more mining power. So, if this will affect btc price. There will be correction first because some miners will want to sell to buy more mining power. And later, the price can go up more than expectation because many people already dumped.
So the Bitcoin halving will affect Hashrate positively because miners will need more hashpower.
Hopefully, my explanation should help you.

[Harlot]

Here is an article explaining if there is a correlation between the drop in hashrate as well as the price in Bitcoin during the "flash crash" in mining power during September of 2019 where Bitcoin's price as well drop significantly. The bottomline of the article is that the correlation between the two of them is either non-existent or at least debatable since miners should be following the price of Bitcoin and not the other way around where after the drop in hashrate the price of Bitcoin quickly follows. This just dhow that FUD is more the cause of the drop rather than the decrease in hashrate itself.

[jackg]

Yeah I don't think hash rate should have a difference unless it's a huge drop.

A large drop makes it harder for people to send transactions as quickly and as cheaply. But a small drop shouldn't do very much and could be due to anything (power cuts and such - I think bitmain had one in a farm in China recently).

[Jating]

Hi.

I was looking at the hashrate vs price chart and I am wondering if there actually is any correlation between those two. If hashrate drops significantly do you think it would affect BTC price at all?

You just have to look at the recent crash this March, and you will see that there are correlations. When the price goes down hard, the hash rate also decline. I think you can start your investigations from there.

In my opinion, even tho halving just occurred we should expect hashrate to be lower, we can still see it is stable, so I guess not so many miners closed their mining farms.

It is expected though that some mining farms have closed already, because it's either they don't have the new mining gear and obviously it will be hard for them as there are no profits to be made.

Do you think some of them are currently mining with loss? and if so, should we expect hashrate to drop soon?

I think the exodus has stopped already. On the contrary, I believed that there could be new players who wanted to join and enter the picture after this halving. So when some door closes, another one open.

[JeromeTash]

Hi.

I was looking at the hashrate vs price chart and I am wondering if there actually is any correlation between those two. If hashrate drops significantly do you think it would affect BTC price at all?

You just have to look at the recent crash this March, and you will see that there are correlations. When the price goes down hard, the hash rate also decline. I think you can start your investigations from there.

In other words, the hashrate can't be used to predict the price of Bitcoin according to OP's interest but it's possible vice verse as Hashrate follows what happens with the bitcoin price.

so I guess not so many miners closed their mining farms.

If you noticed, immediately after the halving, the mining fee was  high and it still is during weekdays. So, even after halving of the block rewards, there is still enough incentive to keep the miners happy in form of transaction fees and if there are miners who closed their farms, I don't think they are many.

[Kemarit]

Hi.

I was looking at the hashrate vs price chart and I am wondering if there actually is any correlation between those two. If hashrate drops significantly do you think it would affect BTC price at all?

In my opinion, even tho halving just occurred we should expect hashrate to be lower, we can still see it is stable, so I guess not so many miners closed their mining farms.

Do you think some of them are currently mining with loss? and if so, should we expect hashrate to drop soon?

Well if you look a this chart (https://charts.woobull.com/bitcoin-hash-price/)



Just maybe you can see some correlation, specially at the peaked of Bitcoin's price in December 2017-Jan 2018 at this evidently cross each other that time.

But after that there is a slight divergence and it's barely noticeable. So long term, even if we see some miners going out of business eventually it will flatten out. So I wouldn't be concern at this point.

[pooya87]

I was looking at the hashrate vs price chart and I am wondering if there actually is any correlation between those two. If hashrate drops significantly do you think it would affect BTC price at all?

there is a correlation between price and hashrate but not the way it has been advertised by some newbies on the internet for the past year. the correlation is simply this: if price goes up, hashrate follows and if price goes down hashrate can follow. but if hashrate rises or falls it doesn't affect the price.

think of it this way, miners are employees that are hired to do a job for the bitcoin network and get paid for the amount of job they do. imagine if you were an employee of a company that paid you $50 per hour of work you perform and you could work 1 hour a day or 10 if wanted to. if you some day decide to leave the company (lower hashrate) the company doesn't go down or they won't reduce the salary they pay, instead they simply hire someone else to fill your place.
that is what happens if hashrate drops. suddenly room opens up for other miners to come in and make profit so hashrate goes back up again. in reality since there are thousands and thousands of miners there isn't any sudden big rise or drops. instead there is fluctuations.

[buwaytress]

Think the forum's had a few arguments already and the eternal question around this correlation is: does hash rate follow price, or does price follow hash rate?

And I think the logical answer is always going to be the former. Because miners are the only ones who can follow. I turn on my rig if I think I can make profit. It's not by me turning on my rig that the market moves, otherwise we could all manipulate this easily =)

[Paulinerims]

Its always fun to look at indicators like that 
Thats why I love Newscrypto.io platform, I predict you found it there

[Harlot]

If you noticed, immediately after the halving, the mining fee was  high and it still is during weekdays. So, even after halving of the block rewards, there is still enough incentive to keep the miners happy in form of transaction fees and if there are miners who closed their farms, I don't think they are many.

The mining fee was high due to users who are willing to pay more during that time, it might be because of P2P trades happening in anticipation of the halving. And based from the news I have seen a lot of miners have already closed down their operations that's why when we look at the charts you will see some temporary drops in Bitcoin's total hash rate but that thing quickly recovers as these old farms are quickly absorbed by bigger mining farms. But during this time when we see some drops in hashrate we can't really connect if there is a correlation between it and Bitcoin's price since Bitcoin was surprisingly doing good in terms of price movement even if there were higher fees and some minor drop in hash rate.

[pooya87]

If you noticed, immediately after the halving, the mining fee was  high and it still is during weekdays. So, even after halving of the block rewards, there is still enough incentive to keep the miners happy in form of transaction fees and if there are miners who closed their farms, I don't think they are many.

The mining fee was high due to users who are willing to pay more during that time, it might be because of P2P trades happening in anticipation of the halving. And based from the news I have seen a lot of miners have already closed down their operations that's why when we look at the charts you will see some temporary drops in Bitcoin's total hash rate but that thing quickly recovers as these old farms are quickly absorbed by bigger mining farms. But during this time when we see some drops in hashrate we can't really connect if there is a correlation between it and Bitcoin's price since Bitcoin was surprisingly doing good in terms of price movement even if there were higher fees and some minor drop in hash rate.

actually the short term changes in hashrate that are small like the one that we had recently during the weeks following the halving are a lot more complicated than just being affected by the price alone. for example it is possible that some miners had old equipment that they had to shut down but then they bought newer ASICs and came back hence the fall and then the rise of the same size.

this may also sound weird but i think it was possible that a mining farm was experimenting with difficulty manipulation. i posted the picture in the other topic in main board once, if you look at how hashrate dropped you can see it dropped very close to the adjustment and stayed low until difficulty dropped then went back up as difficulty went down.

[Harlot]

~snip

actually the short term changes in hashrate that are small like the one that we had recently during the weeks following the halving are a lot more complicated than just being affected by the price alone. for example it is possible that some miners had old equipment that they had to shut down but then they bought newer ASICs and came back hence the fall and then the rise of the same size.

this may also sound weird but i think it was possible that a mining farm was experimenting with difficulty manipulation. i posted the picture in the other topic in main board once, if you look at how hashrate dropped you can see it dropped very close to the adjustment and stayed low until difficulty dropped then went back up as difficulty went down.

This can be a possibility but chances are the halving of the block rewards is the cause for most small miners to shut their operations down and I think only a few of them are upgrading their rigs or even try to compete with the big boys with the halve rewards. This small term drop in hashrate for me was just a sign that smaller mining farms maximized their time before the halving occurred just before they shut their operations down. And I doubt that even if some of them tried to manipulate the hashrate just to drop the mining difficulty because only the big mining farms will benefit from it if this happen.

[MarzoB]

Tnx for all insightful answers guys. I appreciate it.

As it seems hashrate follows BTC price and not the other way around. If this is so, what is the value of this chart in your opinion?

[BitcoinTurk]

Do you think some of them are currently mining with loss? and if so, should we expect hashrate to drop soon?

 
According to today's prices and the degree of difficulty of mining, I think that many small miners are hurt, but none of the big miners are. Although there is much demand for Bitcoin mining today, there may be increases or decreases in the difficulty level of mining depending on market conditions in the coming days. However, in the absence of a potentially impacting situation, it would be a big mistake to expect a serious increase or decrease.

[ashmodeus]

I was looking at the hashrate vs price chart and I am wondering if there actually is any correlation between those two. If hashrate drops significantly do you think it would affect BTC price at all?

as far as I know , hashrate creating a "mark price" then after seeing a constant hashrate,somehow it's like creating a trigger to investor for buy it. whenever hashrate dropped dramatically it will make panic sell signal.

Do you think some of them are currently mining with loss? and if so, should we expect hashrate to drop soon?

The hashrate is created from the miner itself , hashrate is the way we measure how much computing power everyone around the world is contributing toward mining Bitcoin.the more people joined,the higher the hashrate level,no need to expect it will drop or up,its totally happened instanly after people joining/leaving mining bitcoin.