As the cryptocurrency bear market clamps on many investors agonize that Bitcoin was just another passing trend.
Bitcoin a little while back broke down past $8000 and is scuffling to find support around $7800, the same level where Bitcoin broke out in early April in a trial to break above $10000. The overall market capitalization is also in a rational decline breaking $400 billion from its all-time highs of over $830 billion.
The market capitalization has been approximately cut in half resulting in major price decreases in Bitcoin and nearly every Altcoin on the market. Apart from the diminishing in price action and market capitalization, there is one area where we are seeing growth and that is in hash rate. This may make us to believe that miners know something we don’t.
Snubbing at the chart on Blockchain.info, we see a very stable increase in hash rate during the months heading up to and after the market sell-off.
Through the data presented we can draw the completion that the total outlook on Bitcoin is positive, at least in the eyes of the miners. Ultimately, miners would not want to distribute their resources mining a digital asset they trust to be not valuable. Miners are in the business to make money and fortunately the downturn in this market will permit them to collect more bitcoin at lower prices in preparation for the next Bull Run.
Most of the dealers concentrate only on the technical outlook and can overlook solid fundamentals and clues such as an expanding hash rate. If the hash rate were to be declining in consistency with price, then there would be cause for bother.
That would tell us that miners are less fascinating in mining Bitcoin and could be turning their focus to mining other cryptocurrencies or not mining at all. It appears to me that miners are taking a longer-term view on Bitcoin and cryptocurrencies, avoiding short-term downtrends in the market.
This point alone should give investors confidence that there is hush a lot of interest in Bitcoin and in mining particularly. Network aide is very strong and should pursue to bloom.