Bitcoin's hash rate has grown by 25% in 2023, making the blockchain the most secure network today, noted Mike McGlone in his report “Cryptos vs. Contracting Liquidity, the Fed.”
According to Bloomberg Intelligence senior analyst Mike McGlone, Bitcoin is the most secure blockchain network in the world.
Bitcoin's hash rate, a metric that indicates the network's computational power to confirm new blocks, has increased by 25% in 2023.
Currently, the Coinwarz data platform shows that Bitcoin's hash rate is above the 377 exahashes per second (EH/s). This value, according to McGlone, highlights how Bitcoin has managed to strengthen in recent months despite the uncertainty and the growing regulatory pressure that governments are exerting and the bad times that the banking system is going through, together with the political change it is facing. the United States Federal Reserve (FED).
Source: Coinwarz
Confidence in Bitcoin increases
McGlone considers that this year Bitcoin and cryptocurrencies have been escaping the downward trend they experienced in 2022, driven by the aggressive increases in interest rates by the FED and the collapse of important projects in the crypto industry, such as Terra, Three Arrows Capital and FTX.
However, with the FED still threatening to continue tightening its monetary policy, the risk of cryptoassets entering a new bearish cycle again is still present.
“The notable 25% year-to-date growth in hash rate indicates that trust in the network is at an all-time high.”
However, it is also true that the banking crisis, which has led the FED to print billions of dollars in recent weeks, has become a catalyst for increasing investor confidence in Bitcoin and crypto assets.
The report “Cryptos vs. Contracting Liquidity, the Fed” McGlone points out that the global financial crisis has made Bitcoin a much more mature and resilient alternative asset.
Bitcoin has surpassed the $25.000 resistance, according to McGlone
In his analysis, McGlone affirms that Bitcoin has surpassed the resistance of $25.000 per unit and that as an investment asset it has performed much better than that of raw materials and precious metals such as gold, considered one of the safe haven assets of most important values of the traditional system.
Thus, the current situation of banks in crisis is greatly favoring the growth of Bitcoin, leading the cryptocurrency to become the best-performing investment asset this year.
This YDT (Year to Date) growth of Bitcoin may indicate that the market-leading cryptocurrency is ready to enter a new supercycle and reach new highs, indicated the Bloomberg analyst. This 2023, Bitcoin will record more than 70% growth in its price.
Bitcoin recovers from 2022 bear cycle
The financial crisis and the collapse of several major companies and projects in the crypto industry led cryptocurrencies into a bearish cycle last year. The price of Bitcoin went from trading above $50.000 in early January to just $15.590 per unit in November.
The drop in the price of Bitcoin and crypto assets forced many cryptocurrency miners to disconnect their equipment due to the low profitability that this activity offered at that time. Several crypto mining companies even put their mining equipment up for sale to access liquidity or pay off debts, temporarily affecting Bitcoin's hash rate.
However, the scenario has changed and since last November, the price of Bitcoin has been on the rise, as has the computational power of the blockchain.
“The higher the hash rate, the more difficult it is for a single entity to control the network or manipulate transaction history.”
Hedge fund manager Jesse Myers agrees with McGlone that Bitcoin could be approaching an inflection point. Myers assures that the price of the cryptocurrency can rise to stratospheric levels driven by the global financial crisis.
Also, American investor and former chief technology officer of Coinbase, Balaji Srinivasan, considers it “reasonable” for the price of Bitcoin to rise as high as reaching $1 million in the coming months.
Continue reading: MicroStrategy buys 1.045 more bitcoins and already has 140.000
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