Recently, the hashrate of the Bitcoin network has reportedly expressed some indications of recovery. Julio Moreno, a well-known crypto analyst at the popular analytics platform, has implied that this hashrate recovery denotes a positive sign for the overall Bitcoin ecosystem. The analyst took to his official social media account to reflect on the current scenario surrounding Bitcoin.
#Bitcoin network hashrate has been recovering lately along with the price increase.
The drawdown is now 5% compared to almost 9% a few weeks ago. pic.twitter.com/7q0G58ljwk
— Julio Moreno (@jjcmoreno) July 23, 2024
Bitcoin Hashrate Resurges Simultaneous to Price Upsurge
In his exclusive X post, the analyst noted that this achievement contributes to the further progress of the Bitcoin network. In this respect, the higher hashrate normally points toward increased miner confidence and heightened network security. At the moment, the hashrate of the Bitcoin network has plunged by just five percent from the peak thereof. The respective development works as an improvement from its status a few weeks back.
At that time, the Bitcoin network was experiencing nearly a nine percent dip from the peak. As a result of the current hashrate recovery, the miners may reactivate operations. They will reportedly do this while responding to the spiking profitability resulting from the price surge of Bitcoin. Apart from increasing the price, the hashrate recovery will also likely pave the way for economic incentives, with more miners deploying their resources.
The Decreased Drawdown of 5% from Peak also Offers a Promising Outlook for the Bitcoin Network
This will lead to the direction of additional computational power to the network, improving the hashrate. More hashrate increases the Bitcoin network’s security, maintaining stability and trust. Moreover, the hashrate recovery also reflects a significant improvement in the miner sentiment. The CryptoQuant analyst also suggests that the decreased drawdown of 5% also displays an optimistic outlook.