The price of the pioneering cryptocurrency has recovered more than 12% since its last low point. Dogecoin and Monero are the only ones among the major cryptocurrencies on the market that are in the red.
This week started well for Bitcoin (BTC) as its price seems to be recovering, once again exceeding USD 53,000. Besides, the network looks healthy after the return of miners’ hash rate and the drop in transaction fees.
At the start of the week, the price of Bitcoin rose by more than 8% in 24 hours, according to data from CoinMarketCap. Thus, there has been a confirmation of the rapid rebound after the drop of more than 20% in recent days.
Taking into account its latest low point, the rise in the price of Bitcoin has been above 12%. The main cryptocurrency on the market went from USD 47,250 to USD 53,200 in a matter of hours. Although the price of Bitcoin rallied, it remains far from its all-time high above USD 64,000 per unit.
The major cryptocurrencies on the market have accompanied Bitcoin’s positive movement in recent days. Only Dogecoin and Monero have shown red numbers among the top 50 of the market. Meanwhile, Ripple (XRP), Ether (ETH), Cardano (ADA), Uniswap (UNI) and Polkadot (DOT) have gained between 9% and 12%.
The reason for the rise in the price of the pioneering cryptocurrency seems to be the recovery in the hash rate. The processing power of miners on the Bitcoin network fell by as much as 40% on April 15th. At that moment, it touched 110 EH/s of accumulated power on the network.
The Collapse of the Hash Rate and High Fees on Bitcoin
According to data from statoshi.info, the network already accumulates more than 160 EH/s of hash rate. Since fees returned to regular levels, around 40 satoshis per vbyte is enough for a transaction to go into the next block, according to mempool.space.
With this behavior, the correlation between the power that miners bring to the network and the price of the cryptocurrency is confirmed. Although they fell one after the other, they have been able to recover.
In mid-April, there was a power outage in China’s Xianjing province. This situation caused the collapse in the hash rate given the great concentration of mining power in the Asian country.
The drastic loss of mining power led the Bitcoin network to enter into heavy transaction processing congestion. Additionally, fee costs rose to higher levels than usual, above 200 satoshis per vbyte.
There was a drop in the value of BTC in the market due to an apparent crisis of trust in the health of the network. That drop happened quickly after Bitcoin had reached the new all-time high just the day before.
The same as on previous occasions, the health of the Bitcoin network has resumed its course. The cryptocurrency has shown that it is capable of hitting new all-time highs after suffering big drops. It is only a matter of time before the price of the main cryptocurrency on the market achieves new record levels.
By Alexander Salazar