Bitcoin hashrate, which we can define as a measure of the processing power that feeds the blockchain protocol underlying Bitcoin (BTC), has fallen below the level seen after the “Black Thursday” collapse. This is a serious problem that can lead to a severe selloff in the coming days.
The great collapse on March 12, called Black Thursday, will not be a day that investors and traders can forget at least in a short time. Because Bitcoin and many cryptocurrencies have lost almost half their value to this day.
Of course, along with the cryptocurrency market, traditional exchanges and even precious metals, which are considered safe ports, have also suffered a serious depreciation. Later, along with Bitcoin, other markets rose again to their peak in early February, before the epidemic.
After this collapse, miners had to shut down their mining machines until Bitcoin became profitable again, and Bitcoin was hit hard by the hashrate at that time. Now the hashrate is even lower than this drop in Black Thursday.
According to data provided by blockchain.com, Bitcoin hashrate is at the lowest level in 2020. Similarly, the collapse occurred in 2017 when Bitcoin fell from $ 6,000 to $ 3,200. However, this decline started in October and then started to rise again in November 2018.
Towards the end of 2019, there was a slight drop again, but Bitcoin hashrate reached its all-time high after this drop. Along with Black Thursday, the Bitcoin hashrate had the biggest drop ever.
Why is Bitcoin Hashrate Falling?
Behind this drop could be the Bitcoin Half-Time Event that took place recently. With the reward per block halved, miners who did not work with high-efficiency devices were unable to afford energy consumption costs and turned off their devices. Of course, this situation naturally caused the hashrate to drop.
As a result of this situation, although the weak miners, who leave the network to more efficient miners, provide the ideal conditions for the network and the next bullish trend, this process may cause short-term but violent selloff.
The lowering of Hashrate from Black Thursday may lead the leading crypto asset to see the lowest level of 2020 again.
As of writing, Bitcoin (BTC) is trading at $ 8,824.