Hash Rate Crashed 45% in January. Bitcoin Hit $60K in February. It's Happening A

[Alpen]

Bitcoin opened lower for the sixth session in a row. The downtrend is being confirmed by rising trading volumes, which makes it more likely we'll retest the yearly lows around $60K.



But Bitcoin's hash rate hasn't hit new lows yet. Mining power is considered a non‑trading indicator. Still, investors keep a close eye on it as a measure of blockchain security.

Back in late January, the hash rate dropped sharply by 45%, and by early February the bears had pushed the price down to $60K. Miners helped them out by dumping a record amount of their stacked BTC early this year, thanks to shutdowns and ASIC downtime. According to CryptoQuant, on June 2 miners again flooded exchanges with the biggest volume of Bitcoin in four months.



A hash rate drop has been part of every crypto winter since 2018. And often, that process coincides with the market bottoming out. Looks like we're in for a double bottom this year.

[EarnOnVictor]

Bitcoin opened lower for the sixth session in a row. The downtrend is being confirmed by rising trading volumes, which makes it more likely we'll retest the yearly lows around $60K.

I've stayed in the market environment for so long to know the gravity of what is happening with Bitcoin now. If a market could fall for many months, and suddenly it reversed higher and tried to buy back for about 2 months, but could proceed higher at a point in the second month, and instead, it plummeted and ended the second month negative; thereby creating a negative price action. Such market are often unforgiven in their selling, especially if they've already broken many key support levels on their way selling.

This is the situation of Bitcoin. It now holds below the level I mentioned many times recently (EMA50) on the monthly chart at $66,350, which can be so terrible for it and pave the way to hit the year-low of $59,810 again. It was barely about $1,500 remaining to hit it again yesterday, and just a few hundred bucks to hit $60,000.

[philipma1957]

Bitcoin opened lower for the sixth session in a row. The downtrend is being confirmed by rising trading volumes, which makes it more likely we'll retest the yearly lows around $60K.

I've stayed in the market environment for so long to know the gravity of what is happening with Bitcoin now. If a market could fall for many months, and suddenly it reversed higher and tried to buy back for about 2 months, but could proceed higher at a point in the second month, and instead, it plummeted and ended the second month negative; thereby creating a negative price action. Such market are often unforgiven in their selling, especially if they've already broken many key support levels on their way selling.

This is the situation of Bitcoin. It now holds below the level I mentioned many times recently (EMA50) on the monthly chart at $66,350, which can be so terrible for it and pave the way to hit the year-low of $59,810 again. It was barely about $1,500 remaining to hit it again yesterday, and just a few hundred bucks to hit $60,000.

mortal lock for hash to go under 100th

and a mortal lock for price to fall to 49-52k

recovery will be long and hard.

cheap btc will be easy to get for quite a white.

now is the time to dca of at least 104 weekly buys.

[yhiaali3]

Yes, a retest of $60K is very likely because the short-term trend is downward, but personally I am not worried because I believe the medium-term trend is accumulating and the long-term trend is strongly upward as long as the fundamentals are sound, so this is a time to accumulate and further build up.

A sharp drop in the hash rate of 45% is not very serious and I think it is temporary and will be overcome. As far as I can remember, something more difficult happened when China banned mining in 2021 (where the mining hash rate dropped by more than 50%), yet the network was able to overcome the crisis and things returned to normal after a short period of time.

[pooya87]

Back in late January, the hash rate dropped sharply by 45%, and by early February the bears had pushed the price down to $60K.

From 1000 to 690 EHS is closer to 30% than 45% and what you forgot to mention that by that time price was still holding above $9k well enough and when the price started to drop the hashrate was actually going back up again. In fact by the time price had reached $60k the hashrate had also gone up to 1000 EHS again.

So your conclusion to try and link hashrate fluctuations to the price is severely flawed.

[JeffBrad12]

$60k it is. I was pretty optimistic on $80,000, then I zoomed out the chart to monthly or weekly and the chart shows obvious sign of another big dump.
Guess I'll do what good investor did, buy low and wait for another pump cycle.

[Alpen]

Yes, a retest of $60K is very likely because the short-term trend is downward, but personally I am not worried because I believe the medium-term trend is accumulating and the long-term trend is strongly upward as long as the fundamentals are sound, so this is a time to accumulate and further build up.

A sharp drop in the hash rate of 45% is not very serious and I think it is temporary and will be overcome. As far as I can remember, something more difficult happened when China banned mining in 2021 (where the mining hash rate dropped by more than 50%), yet the network was able to overcome the crisis and things returned to normal after a short period of time.

When miners were kicked out of China, they tried to resume operations all over the world. Despite there being many seemingly attractive locations for Bitcoin mining, the US was the only place where they could actually scale their business safely.

What happens if they get pushed out of the US? Where will they go? How long will it take them to find a new home? What will happen to the hash rate then?

Until we see a recovery and growth in computing power, large investors are going to stay on the sidelines and won't buy Bitcoin.

[MadSl1m]

pooya87 already covered the causality, so just adding the missing piece. The reason that late-January drop was so sharp and then snapped back is that a big chunk of it was Winter Storm Fern forcing Texas miners to curtail for the grid, not capitulation. Weather curtailment comes back online once the storm passes, which is why hashrate climbed back toward 1 ZH/s while price kept sliding. The genuine miner stress was separate and economic: spot was running below production cost, roughly $87K against a sub-$70K price, and difficulty cut about 11% to compensate. So the late-Jan dip was mostly grid, not miners giving up.

[barbara44]

When miners were kicked out of China, they tried to resume operations all over the world. Despite there being many seemingly attractive locations for Bitcoin mining, the US was the only place where they could actually scale their business safely.

What happens if they get pushed out of the US? Where will they go? How long will it take them to find a new home? What will happen to the hash rate then?

Until we see a recovery and growth in computing power, large investors are going to stay on the sidelines and won't buy Bitcoin.

That is the good thing about the USA, you won't get pushed out of there if you know what you are doing and a great business that pays good taxes. You can literally pollute the whole country and release an evil gas or something, and you would still get away with it by paying a fine.

Hell oil companies literally destroyed the ocean, and they just paid a fine and moved on, they make that money in a year now, so one year of profits from one company equalled one ocean being destroyed. In any case, we should not be worried about miners in the US, they are going to be fine.

[yhiaali3]

Yes, a retest of $60K is very likely because the short-term trend is downward, but personally I am not worried because I believe the medium-term trend is accumulating and the long-term trend is strongly upward as long as the fundamentals are sound, so this is a time to accumulate and further build up.

A sharp drop in the hash rate of 45% is not very serious and I think it is temporary and will be overcome. As far as I can remember, something more difficult happened when China banned mining in 2021 (where the mining hash rate dropped by more than 50%), yet the network was able to overcome the crisis and things returned to normal after a short period of time.

When miners were kicked out of China, they tried to resume operations all over the world. Despite there being many seemingly attractive locations for Bitcoin mining, the US was the only place where they could actually scale their business safely.

What happens if they get pushed out of the US? Where will they go? How long will it take them to find a new home? What will happen to the hash rate then?

Until we see a recovery and growth in computing power, large investors are going to stay on the sidelines and won't buy Bitcoin.

I understand your point of view, but the percentage of mining hashrate in the United States currently does not exceed 40-43%, while at the time of the ban in 2021 China controlled between 65% and 75% of the global hashrate and yet Bitcoin did not collapse.

The hashrate dropped 50% but recovered within months and the price later reached a new all-time high. This proves that the network is not dependent on a single country and that the exit of any country, whether China or the United States, will not be the end of Bitcoin because the difficulty will automatically decrease and miners will move quickly and the hashrate will recover within months.

[Myleschetty]

Yes, a retest of $60K is very likely because the short-term trend is downward, but personally I am not worried because I believe the medium-term trend is accumulating and the long-term trend is strongly upward as long as the fundamentals are sound, so this is a time to accumulate and further build up.

A sharp drop in the hash rate of 45% is not very serious and I think it is temporary and will be overcome. As far as I can remember, something more difficult happened when China banned mining in 2021 (where the mining hash rate dropped by more than 50%), yet the network was able to overcome the crisis and things returned to normal after a short period of time.

When miners were kicked out of China, they tried to resume operations all over the world. Despite there being many seemingly attractive locations for Bitcoin mining, the US was the only place where they could actually scale their business safely.

What happens if they get pushed out of the US? Where will they go? How long will it take them to find a new home? What will happen to the hash rate then?

Until we see a recovery and growth in computing power, large investors are going to stay on the sidelines and won't buy Bitcoin.

I understand your point of view, but the percentage of mining hashrate in the United States currently does not exceed 40-43%, while at the time of the ban in 2021 China controlled between 65% and 75% of the global hashrate and yet Bitcoin did not collapse.

The hashrate dropped 50% but recovered within months and the price later reached a new all-time high. This proves that the network is not dependent on a single country and that the exit of any country, whether China or the United States, will not be the end of Bitcoin because the difficulty will automatically decrease and miners will move quickly and the hashrate will recover within months.

I agree with your statement that the hashrate decline is not a problem because it has happened before and would happen again on the Bitcoin network due to political beliefs, electricity regulation etc.
I believe that Alpen is more worried about the future than he should be because of what might occur if the US government forces miners to leave the country, which could happen if a new President who is ignorant of Bitcoin is elected.
I think he didnt fact why Bitcoin is a decentralized currency that is open to anyone who wants to use it. If the US drives out miners, it will make it possible for another nation to host them, which will increase the income of that nation.

[X-ray]

I agree with your statement that the hashrate decline is not a problem because it has happened before and would happen again on the Bitcoin network due to political beliefs, electricity regulation etc.
I believe that Alpen is more worried about the future than he should be because of what might occur if the US government forces miners to leave the country, which could happen if a new President who is ignorant of Bitcoin is elected.
I think he didnt fact why Bitcoin is a decentralized currency that is open to anyone who wants to use it. If the US drives out miners, it will make it possible for another nation to host them, which will increase the income of that nation.

Even if somehow hashrate happened because a certain bill is passed in the U.S. other country will take a chance to mine bitcoin with boosted reward because decreasing difficulty.

There are many countries that are waiting for opportunity to turn their wasted electricity into real money and one of them is through mining bitcoin.

Hashrate is good indicator for price volatility, but was never a problem for Bitcoin's blockchain.

There was never one instance where hashrate is dropping and not recovery few months or year later.

It's currently at high rate despite bitcoin having to gone through multiple tribulation with the 4 year seasonal bitcoin cycle.