Bitcoin Hash Rate Hits Record Average High With $12K Price in Sight

As the price of Bitcoin continues to meet resistance passing $12,000, its hash rate has hit a new all-time high.

Data from Blockchain.com confirms that on Aug. 15, Bitcoin’s seven-day average hash rate reached a new peak of 129.075 EH/s. The achievement comes after two weeks of fairly stagnant hash rate growth, with the previous record set on July 28. 

Bitcoin 7-day average hash rate. Source: Blockchain

The hash rate is an estimate of how much computing power miners are devoting to processing Bitcoin (BTC) transactions. A higher average suggests that miners have more faith in profitability, so there is generally a strong correlation between hashrate and price.

Bitcoin surged past $12,000 twice in August before falling back into the same mid-$11,000 range. The BTC price continues to meet resistance at the $12,000 level, staying between $11,700-$11,900 range over the weekend. 

Gold and Bitcoin correlation 

Bitcoin and gold may prove to have a stronger correlation in 2020 as many investors turn away from traditional finance during the Federal Reserve’s and other central banks’ response to the pandemic. 

The price of gold recently passed $2,000 per ounce as Bitcoin may be in the early stages of its own bull run. Bitcoin investor Max Keiser said that billionaire Warren Buffett’s recent investment in gold could even push the price of BTC to $50,000.