Bitcoin [BTC] network hashrate has seen a remarkable recovery, rising from June lows of 550 TH/s to a record high in September. The metric tracks the computational power needed to mine a single BTC and, by extension, the network security.

The recovery suggested that miners deployed more power in the summer after the massive miner capitulation that began the post-BTC halving event in April.

However, the BTC price has failed to keep up with the surge in hashrate, with the metric positing a divergence from the asset's price movement.

According to Mathew Siggel, VanEck's Head of Digital Assets Research, the network hashrate surge was partly driven by cheaper electricity in Texas during the summer months.

Yet, the BTC miner sell-off has intensified this week, which could potentially affect the asset's price recovery going forward.

Experts note that the disconnect between the hashrate and BTC price might be attributed to factors such as miner capitulation, energy costs, and broader market dynamics.

The article explores the reasons behind this divergence and its potential implications for the cryptocurrency market.

Source: https://ambcrypto.com/high-bitcoin-hashrate-fails-to-prop-up-btc-heres-why/

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