Bitcoin is still struggling to break through strong resistance at $12,000, but the good news is that its hash rate has hit a new all-time high. Historically, the crypto’s price has followed its hash rate, which is an estimate of the amount of computing power being devoted to processing transactions on the blockchain.

Data from Blockchain.com confirms that on August 15, Bitcoin’s seven-day average hash rate reached a new peak of 129.075 TH/s. The achievement comes after two weeks of fairly stagnant hash rate growth, with the previous record set on July 28, Cointelegraph reported.

Bitcoin 7-day average hash rate. Source: Blockchain

Bitcoin surged past $12,000 twice in August before falling back into the same mid-$11,000 range. The price continues to meet resistance at the $12,000 level, remaining between $11,700-$11,900 range over the weekend. 

Gold-bitcoin correlation

With many investors turning their backs on traditional finance due to fears over the impact of central bank money printing in response to the Covid-19 crisis, a stronger correlation between bitcoin and gold may emerge in 2020.

Billionaire investor Warren Buffet recently surprised observers when he dumped his bank holdings in favor of gold miner stocks. He has traditionally taken a dim view of the safe-haven asset as an investment, so his decision is seen by observers as an indication that he sees choppy waters ahead, particularly for the banking sector as the spectre of negative rates looms on the horizon.

(Excerpt) Read more Here | 2020-08-17 04:45:00
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