A mining pool holds 50% of the Bitcoin Cash hashrate

The hash rate of the Bitcoin network is almost unchanged when the price of BTC plummets to $ 3,600 – losing about 50% within 24 hours. This may indicate that large mining companies did not “draw power” amid the market downturn.

Is the high hash rate still a positive factor?

High-end investors in the cryptocurrency market, such as Ari Paul – managing partner of BlockTower Capital, say that investors have not decided to sell as low as $ 4,000.

The liquidation of $ 1 billion of Long contracts on major derivatives exchanges led to a flash crash of $ 3,600 – triggering multi-position margin calls.

That shows that the major investors in the market did not surrender to the rapid decline to below $ 4,000 of Bitcoin.

The strong belief of big Bitcoin holders like Winklevoss Twins – CEO of Gemini, and Michael Novogratz – CEO of Galaxy Capital, shows that the whales did not sell their BTC in the beginning when the price dropped in the middle of the region. $ 3,000 is not likely to surrender in the short term.

Large-scale mining farms are said to have prepared at least 12 months of pre-halving costs in May 2020. This could prevent potential sell-offs by mining companies during the months. to – which could theoretically put significant selling pressure on the market.

Bitcoin hashrate chart. Source: Blockchain.com
Bitcoin hashrate chart. Source: Blockchain.com

The relative stability of Bitcoin hashrate also indicates that miners are still confident in Bitcoin's long-term price trend.

Can BTC recover by the end of the year?

The main reason for the recent collapse of the cryptocurrency market is attributed to the frenetic sell-off in stocks in the United States and Europe amid growing fears of the Covid-19 virus.

READ  Bitcoin dropped to a 4-week low of $ 8,400 when it closely followed the target of Stock-to-Flow

That means if the US and European stock markets begin to recover in the coming months as the spread of the corona virus slows down, then the resilience of cryptocurrency assets will come.

Although the confidence level that the US government will prevent the Covid-19 outbreak has dropped significantly since the beginning of March, advances in China, South Korea and Singapore have demonstrated that it is possible kill this virus.

Balaji Srinivasan – former Stanford professor and researcher highly regarded by experts with a series of articles about clinical genetics and microorganisms, said:

“China, South Korea, Singapore and Taiwan have shown that it is easier to completely eliminate new cases than we thought. If so, our goal is not to reduce the spread but to destroy it. Bring new infections to zero while speeding up diagnosis & drugs with extended testing rights. ”

Over the next few months, the correlation between Bitcoin and the U.S. stock market is expected to continue, which will make Bitcoin's resilience by the end of 2020 dependent on Covid's containment process. -19 in the United States and Europe.

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According to Cryptoslate
Translated by ToiYeuBitcoin

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