The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Does Bitcoin’s increasing hash rate correlate with Bitcoin price? Bitcoin’s price rise has been controversial in the mainstream media since its inception in 2009. While most publications agree that the virtual currency is highly volatile and random, certain data sets prove that price fluctuations can be traced back to a popular indicator.

Using data from Blockchain.com and overlaying price history to examine trends, a Reddit post noted an oddity between Bitcoin hash rate and price action since 2009.

Bitcoin Price and Hash Rate Correlation

Bitcoin price has largely “reverted” to hash rate data; 11 major instances of price matching the logarithmically calculated hash rate value. For retail traders, this observation proves useful — buying Bitcoin whenever the price exceeded the hash rate value result was followed by a gradual sell-off after four instances of large price spikes.

The correlation means that Bitcoin is not as random as popular consensus suggests. Trading value, price activity, technical analysis, and fundamental news all contribute to Bitcoin price movements, just like traditional markets.

A full suite of analysts on TradingView are dedicated to trading hash rate data, suggesting that investment ideas for this indicator are not far-fetched.

For the uninitiated, hash rate can be defined as the “buying power” of the Bitcoin network, meaning that as network activity increases, all transactions can be “hashed” through complex, CPU-intensive mathematical puzzles.

A higher hash rate also indicates the strength of a blockchain network —
More miners means better security from a 51% attack, as more miners (and computing power) are needed to “attack” the blockchain (assuming one or a few entities don’t control mining).

Bitcoin Hash Rate Is Not the Holy Grail

However, this correlation is not without criticism. Some Reddit users pointed out that hash rate and price are a chicken-and-egg game. Rising prices have created a lot of retail and speculative interest in the cryptocurrency market, with investors looking to get a quick return with no intention of using digital assets in the “real” world.

Bitcoin’s Flat Hash Rate

Additionally, Bitcoin’s mining activity and price have grown exponentially since 2009, suggesting that a larger sample set will be observed before using hash rate as a viable transaction method.

Meanwhile, the hash rate chart shows signs of flattening out. Bitcoin’s mathematical complexity has grown exponentially — performing over 7.4 billion calculations per second — and by May 12, 2020, the mining “reward” will drop to just 6.25
BTC.

With mining costs increasing and rewards decreasing, the flattening could mean that the hash rate will reach a “peak” and stabilize in the near future, and Bitcoin’s price will eventually decouple from the hash rate data as a whole.