{"id":100209,"date":"2020-10-29T12:00:07","date_gmt":"2020-10-29T09:00:07","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/price-follows-hash-rate-bitcoin-fundamentals-drop-may-delay-14k\/"},"modified":"2020-10-29T12:00:07","modified_gmt":"2020-10-29T09:00:07","slug":"price-follows-hash-rate-bitcoin-fundamentals-drop-may-delay-14k","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/price-follows-hash-rate-bitcoin-fundamentals-drop-may-delay-14k\/","title":{"rendered":"# \u2018Price follows hash rate\u2019 \u2014 Bitcoin fundamentals drop may delay $14K"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3aba2d60bfd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3aba2d60bfd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/price-follows-hash-rate-bitcoin-fundamentals-drop-may-delay-14k\/#Difficulty_set_to_repeat_June_readjustment\" >Difficulty set to repeat June readjustment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/price-follows-hash-rate-bitcoin-fundamentals-drop-may-delay-14k\/#Claiming_Bitcoins_final_price_hurdle\" >Claiming Bitcoin\u2019s final price hurdle<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># \u2018Price follows hash rate\u2019 \u2014 Bitcoin fundamentals drop may delay $14K <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">Bitcoin (BTC) could see further downward price pressure this week as network difficulty is set to drop the most in five months.<\/p>\n<p>Data from data resource <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/btc.com\/stats\/diff\">BTC.com<\/a> estimated that difficulty will drop by 8.3% at the next automatic readjustment in four days\u2019 time.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Difficulty_set_to_repeat_June_readjustment\"><\/span>Difficulty set to repeat June readjustment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The mining difficulty is an essential measure of the competition among miners in finding block subsidies, and by extension, the overall health of the mining sector. <\/p>\n<p>Automatic readjustments meanwhile fulfil an even more important function, allowing Bitcoin to sustain itself regardless of price action or other circumstances.<\/p>\n<p>In June, difficulty dipped 9.3%, following a previous 6.3% decrease, which marked the culmination of miner upheaval after Bitcoin\u2019s block subsidy halving event in May.<\/p>\n<p>The halving cut the block subsidy by 50%, which produced a drastically different profit dynamic for miners operating on tight margins or with older equipment. The two consecutive downward adjustments opened up opportunities for less-efficient miners once again, and difficulty corrected upward by almost 15% thereafter.<\/p>\n<p>The latest fall, meanwhile, has been attributed to the end of the so-called \u201chydro season\u201d for Chinese miners. This occurs each October when rainfall in China\u2019s Sichuan province eases and cheaper hydroelectricity dries up, pushing up costs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Claiming_Bitcoins_final_price_hurdle\"><\/span>Claiming Bitcoin\u2019s final price hurdle<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The knock-on effect, coming at a time when Bitcoin tried and failed to crack $14,000 resistance for the first time in almost 18 months, may be a longer withdrawal from that essential level.<\/p>\n<p>As Cointelegraph reported, hardly any technical resistance levels lie between $14,000 and Bitcoin\u2019s all-time highs of $20,000 from 2017.<\/p>\n<p>On Tuesday, developer <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/matt_odell\/status\/1321102682208276483\">Matt Odell<\/a> summarized the process on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>:<\/p>\n<blockquote><p>\u201cRainy season ended in china -&gt; increased energy prices for hydro -&gt; hash rate falling as miners transition to cheaper power -&gt; blocks mined less frequently until difficulty adjustment.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"\/><\/p>\n<p>Odell was discussing another result of reduced miner activity \u2014 larger Bitcoin transaction fees, which have spiked almost 200%.<\/p>\n<p>After June, price action slowly fell in line with both difficulty and Bitcoin network hash rate. Thereafter, as both metrics picked up, price staged a comeback of its own, bolstering a popular theory that price follows fundamentals, and hash rate in particular.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-10\/a605ae13-e121-451f-a30e-9a3dd8991ae5.png\"\/><\/figure>\n<p><em>Bitcoin 7-day average hash rate 60-day chart. Source: <\/em><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.blockchain.com\/charts\/hash-rate\"><em>Blockchain<\/em><\/a><\/p>\n<p>Zooming out, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/LinaSeiche\/status\/1318587678342799360\">Lina Seiche<\/a>, managing director of Bitcoin media outlet BTC Times, drew attention to hash rate\u2019s overall strength.<\/p>\n<p>\u201cThe #Bitcoin hash rate is up 18% since the third halving, 9,300% since the second halving, and 554,000,000% since the first halving,\u201d she tweeted this week.<\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/price-follows-hash-rate-bitcoin-fundamentals-drop-may-delay-14k\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# \u2018Price follows hash rate\u2019 \u2014 Bitcoin fundamentals drop may delay $14K &#8221; Bitcoin (BTC) could see further downward price pressure this week as network difficulty is set to drop the most in five months. Data from data resource BTC.com estimated that difficulty will drop by 8.3% at the next automatic readjustment in four days\u2019&#8230;<\/p>\n","protected":false},"author":1,"featured_media":100210,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-10\/39202f89-5dbb-4bf0-b76c-443c213c576d.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,75042,73785],"class_list":["post-100209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-mining","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/100209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=100209"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/100209\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/100210"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=100209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=100209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=100209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}