Bitcoin's hashrate has seen a significant drop of $ 40.83 million just days after the third halving. This despite the increase in the price of the cryptocurrency that won yesterday around 5.68%. According blockchain.com dataThe hashrate crashed from more than 136 million as of May 10 to just over 95 million on May 12, the day of halving, and has not recovered since.
The price, on the other hand, has risen from less than $ 9,000 which kept the halving lasting around $ 9,500 at the time of reporting. This is coming immediately after an Okex report suggesting that bullish sentiments about Bitcoin were returning after the third halving.
According to the report, bullish sentiment is emerging despite a drop in the Bitcoin open interest. It also says that the number one currency adjustment trading range is a good sign of positive sentiment, although selling pressure is likely to increase in the coming weeks.
However, the price behavior is surprising as Bitcoin's hashrate and price are historically strongly correlated. In 2017, for example, the correlation level was above 91%, meaning that the hashrate and price are expected to go in the same direction. The asset price did not experience any spectacular movement before and after halving, but it is better than hashrate.
This may be due to the fact that some less efficient miners may be backing down as a result of the 50% cut in block rewards. More of these miners are likely to leave if no significant short-term price gains are seen, so the hashrate may continue to suffer.
Meanwhile, the price is expected go up even more so in the coming year, as has been the trend with the previous two halving’s. The all-time high of nearly $ 20,000 in 2017 came after the 2016 halving, so the community wonders if a new all-time high is also on the horizon after this year's halving.