While the market looks sluggish, Bitcoin's dominance and hashrate are growing. This may not be a sign of a possible bull run, but it is still a positive sign. This is not the first time that such indicators are markers that Bitcoin will become a locomotive on the rise and will pull along a train of its smaller digital counterparts.
At the time of writing, the price of Bitcoin is $6,326.53, over the past day it has decreased by 3.07%, the Bitcoin dominance index is 56.4%. We could see a similar level (59% – 65%) in December and January, when the price of Bitcoin reached $20,000 and the cryptocurrency market grew several times. Could this mean a possible repeat of the situation? Or will only Bitcoin's ID continue to rise?
Indeed, if we look at historical examples, we can assume that the price of Bitcoin may again exceed $20,000. However, we cannot confirm this. In fact, Bitcoin's dominance may just continue to grow, and at one point reach 90%, as it has previously.
Why is hashrate growth so important?
Bitcoin's hashrate growth proves that miners are still interested in it. Even with falling prices, declining profits, and rising mining costs, miners are still diligently mining Bitcoin. According to Fundstat Advisors researcher Sam Doctor, Bitcoin's hashrate has nearly doubled since early May, from 28 EH/s to 57 EH/s.
“Doctor's analytics also show that the cost of mining a single Bitcoin is now $7,300, up from $6,000 in May. These calculations take into account the falling cost of mining equipment and suggest a "fair price" for Bitcoin. Given this, information, the price of mining one bitcoin currently exceeds the price of this cryptocurrency by 12%.”
In addition, a high hashrate is a positive sign, which means that the cryptocurrency blockchain is more reliable and resistant to attacks. It also means that miners are interested in Bitcoin even despite the increasing difficulty of mining and bearish market trends.
It is clear that the people who mine Bitcoin believe that it has a future. They believe that its price and value will increase, and therefore they continue to mine and improve the network. A reliable network and high level of security will attract new investors, perhaps even institutional ones. The interest of institutional investors in the cryptocurrency market is another detail necessary for the growth of the price and popularity of Bitcoin.
According to cryptodaily.co.uk
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