The crypto industry as a whole has had some crazy times, as of late, with Bitcoin, in particular, recovering well amid the crypto crash. After losing half its total value in the crypto market, the Bitcoin space has managed to regain most of its momentum, reaching another hash rate all-time-high with a bit more than a week left before the halving.
Up And Down BTC Goes
After the market crash in March, the hash rate of Bitcoin suffered a drop as the old mining rigs made an exodus. However, with the market in recovery, the hash rate has slowly started to rise, and stand now at an all-time high of just over 142 exahashes per second (EX/s), having been recorded on the 3rd of May, 2020
This new record summarily beats the previous all-time high, which has been set at 123 EX/s. This was recorded on the 8th of March, 2020, just four days before the crypto market halved itself in value.
Price Drop Leads To Hash Drop
BItcoin stands at its third halving event, being a bit more than seven days away. With this in mind, miners seem to be gearing up to another bull run, trying to mine as much crypto as possible to sell when it rises.
It should be noted that the crypto market crash had a knock-on effect on the hashing power of BTC as well. In two weeks, the BTC hash rate managed to drop almost 45% when compared to the all-time-high provided just before the crash.
Halving Will See Many Older Rigs Rendered Obsolete: Xu
However, the prices are starting to recover, with BTC being traded for within the $8,600/$8,700 range at the time of writing. This, in turn, saw the eventual hash rate gain of 90% for BTC. Analysts have speculated that this rise in hash rates has been attributed to the rise in crypto prices, but also the impending obsolesce of many mining rigs. This combined has contributed to the hash rate, almost doubling in less than two months.
Johnson Xu, the head of research and analytics at the TokenInsight firm, speculated that a large segment of mining rigs coming from older generations, the S9 models, for example, would shut down after the halving event. This is due to the systems not proving as profitable as they once were.
The halving event severely disrupts the mining sector at large, but Xu considers this a healthy rebalancing process for the crypto industry as a whole. According to Xu, Bitcoin will reach a stable position in due time.