With the price of Bitcoin (BTC) continuing to surpass the resistance level by more than $12,000, its hash rate hit a record high.
Data from Blockchain.com confirmed that Bitcoin’s average 7-day hash rate hit a new high of 129.075 TH / s on August 15. Success came after hash rate growth stagnated for the past two weeks. The previous record was set on July 28th.
The hash rate is an estimate of the computing power of miners processing Bitcoin (BTC) transactions. A higher average indicates that miners have more confidence in profitability. This usually indicates a strong correlation between hash rate and price.
Bitcoin surged above $12,000 twice in August and then fell back to the mid-range around $11,000. BTC price continued to encounter resistance at the $12,000 level and hovered between $11,700 and $11,900 over the weekend.
BTC Losing Dominance
At first glance, Bitcoin’s intraday price movement appears promising as the asset price climbs to around $11,900. However, the bulls were unable to sustain gains and BTC quickly fell back to around $11,800.
After several small but unsuccessful attempts to move higher again, the number one cryptocurrency on CoinMarketCap is back to the $11,800 level as at press time.
With altcoins continuing to generate impressive profits and Bitcoin refusing to break down its $12,000 nemesis, its dominance has been compromised. The metric comparing the market value of BTC to all other tokens fell to 58.4%. This is the lowest value since mid-June 2019.
Strong Relationship between Gold and Bitcoin
As the Federal Reserve and other central banks respond to the pandemic, Bitcoin and gold could have a stronger correlation in 2020 as many investors ditch traditional funding.
The price of gold recently exceeded $2,000 an ounce as BTC may be in the early stages of a bull market. In addition, Bitcoin investor Max Keizer said billionaire Warren Buffett’s recent investment in gold could push the price of BTC as high as $50,000.