Bitcoin hash rate reaches new all-time high after mysterious 30% collapse

Bitcoin recently flash-crashed below $8,000, dropping over $1,000, and the hash rate also plummeted by as much as 30%. However, it quickly rebounded to new highs within just two days.

The Bitcoin hash rate reached a historical high of 108 EH/s on September 27, in a strong response to criticisms about its network being too vulnerable. However, if Bitcoin fails to maintain its competitiveness and the price remains above $7,500, its hash rate may experience a significant decline again.

Mysterious Drop

According to reports, on September 24, the Bitcoin hash rate suddenly dropped by over 30%, from 98 EH/s to 57.7 EH/s. Subsequently, the price of Bitcoin fell to around $7,900 the next day, marking the largest drop this year, and is currently fluctuating around $8,000.

The consecutive events of collapse have led to various speculations within the crypto community, ranging from Bitmex margin calls and contract liquidations, mine power outages, to the Bakkt futures launch reported by ABM, but the true cause remains a mystery.

Old Mining Machines May No Longer Be Profitable

In addition, due to the prolonged stagnation of Bitcoin prices in September, the profitability of Bitcoin mining has declined, leading to speculation that miners may have exited on a large scale. However, despite the drop in Bitcoin, the hash rate has hit a new high, debunking this theory.

Nevertheless, according to Dovey Wan, co-founder of the crypto investment firm Primitive Ventures, if the price of Bitcoin falls below $7,500, making the Antminer S9 unprofitable, the rumored exodus of miners may indeed occur.

Tho daily hasheate chart is volatile and highly depending on statistical expectation, if $BTC price drops to sub $7500, there will be a significant impact on S9 miners

S9 is now on the verge of shutting down, and whoever gets into mining post May on S9 can hardly get break even

— Dovey "Rug The Fiat" Wan🪐 (@DoveyWan) September 26, 2019

Overall, as Bitcoin is approaching its next halving reward in less than a year, market sentiment remains optimistic. The continuous increase in network hash rate is likely to attract new miners, leading to a positive cycle in the market.

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