Bitcoin Hash Rate Reaches All-Time High After Spot Bitcoin ETF Approvals
The hash rate of Bitcoin, which represents the network’s computing power, has recently reached a new all-time high. This milestone occurred shortly after the approval of 11 Spot Bitcoin ETFs by the U.S. Securities and Exchange Commission. Data from IntoTheBlock shows that on January 11, the Bitcoin hash rate reached 630.91 million TH/s or 630 EH/s.
BTC Price and Mining Profitability Decline
Despite the increase in trading volume and network growth, the price of Bitcoin has deviated from the positive trend following the approval of spot ETFs. Initially, the price surged to over $48,600, its highest point since April 2022. However, it has since reversed this spike and is currently trading just above $43,000.
In addition, Bitcoin mining profitability has failed to react positively to the ETF approvals. The drop in Bitcoin prices led to a decline in mining profitability, reaching as low as $0.07958 per terahash/second per day on January 13th.
Hot Take: Potential Impact of Spot Bitcoin ETFs
The approval of spot Bitcoin ETFs signifies mainstream acceptance and strengthens Bitcoin’s credibility. While the initial market reaction was positive, with increased trading volume and network growth, there has been a subsequent decline in both price and mining profitability.
This could be attributed to a “sell the news event,” where traders take profits after significant market developments. It remains to be seen how these new ETFs will impact Bitcoin’s long-term performance and whether they will attract more institutional investors into the crypto space.
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