Recently, the hash rate of Bitcoin, which represents the computational power of the network, achieved a new all-time high. This occurred in the middle of the excitement that accompanied the launch of spot Bitcoin exchange-traded funds in the United States. According to information provided by IntoTheBlock, the Bitcoin hashrate achieved an all-time high of 630.91 million TH/s or 630 EH/s on January 11. This occurred less than twenty-four hours after the United States Securities and Exchange Commission authorized eleven spot Bitcoin exchange-traded funds (ETFs) at the national level.
Bitcoin Hashrate Strikes New Highs for the First Time
For the purpose of mining new bitcoins and processing transactions, the hashrate is a measurement of the total aggregate computing power that occurs. Regardless of whether the market is bullish or bearish, the Bitcoin mining hashrate has been steadily increasing since 2021. This has helped to solidify Bitcoin's position as the most secure cryptocurrency network. The information that was supplied by Coinwarz indicates that the hashrate began the year 2023 with 266 EH/s and completed the year at 598 EH/s, representing a progression of 125%.
A significant increase in the hashrate occurred on January 11, reaching an all-time high of 630 EH/s. The timing of this event was not a coincidence. Following the approval of the first US Bitcoin Spot ETFs by the Securities and Exchange Commission (SEC), the rise in hashrate occurred immediately after the SEC opened the door for mainstream investors to participate in the leading cryptocurrency without actually holding the commodity.
A frenzy of activity in Bitcoin occurred as a result of the acceptance of these exchange-traded funds (ETFs), which caused the on-chain volume of Bitcoin to reach its greatest level since the collapse of the cryptocurrency exchange FTX. In light of this, the hashrate has also grown, which is an indication that miners are increasing their activities in preparation for the increased interest and trading activity that often precedes the introduction of new exchange-traded funds (ETFs).
Mining Profitability and the Price of Bitcoin Both Fall
This is a sign of mainstream acceptance, which improves Bitcoin's legitimacy, and the approval of spot ETFs is an indication of this acceptance. Although there has been a rise in the amount of trade and the expansion of the network, the price of Bitcoin seems to have departed from this generally upward trend. In the beginning, the price of the cryptocurrency responded favorably to the approval of the spot ETFs, which caused it to surpass $48,600, which was its highest point since April 2022. This increase has now reversed, giving rise to the concept of a "sell the news event." This dramatic change of events takes place in the present day.
Since reaching this local high, Bitcoin has had an 11% decline, and it is now trading slightly around $43,000 at the time of this writing. Additionally, the volume of trading has decreased by 62% during the course of the last twenty-four hours.
Bitcoin mining profitability, which had been steadily increasing during the month of December, has not responded favorably to the legalization of spot exchange-traded funds (ETFs). The reduction in Bitcoin prices caused mining profitability to plummet to as low as $0.07958 per terahash/second per day on January 13th, according to statistics from Hashrateindex. This represents a 22% decrease from the $0.10270 per terahash/second per day that was recorded on January 1.
