Bitcoin has risen sharply – what’s going on?

Bitcoin has risen sharply

Bitcoin jumped $ 400 on Thursday, again approaching the $ 11,000 level that it hadn’t been able to subdue all September.

The growth of the first cryptocurrency is taking place against the background of a new all-time high of the network hash rate.

Bitcoin has risen sharply – what’s going on?

The activity of bitcoin miners continues to increase, as evidenced by the steady growth of the hash rate. According to Glassnode, this has risen to 170 exaches per second (EH / s) this week. This is a new historical record, coinspot writes.

After the May halving (reduction in the reward for mining a block), the computing power in the bitcoin network has grown by about 40%. The growing hashrate strengthens the security of the blockchain, Glassnode notes.

Before the halving, the activity of miners reached a historical maximum, but then the hash rate collapsed due to a massive shutdown of equipment due to a drop in revenue for mining BTC. However, in the summer, miners adapted to new working conditions and computing power began to grow again.

Currently, China still tops the list of countries with the highest share of bitcoin hashrate (75.62%). Russia is in second place with a hash rate of up to 5.93%. The United States rounds out the top three, with American miners accounting for just over 4% of the capacities used to mine cryptocurrency.

Payment company Square Jack Dorsey, a well-known supporter of the first cryptocurrency, announced the purchase of bitcoins for $ 50 million. Previously, the CEO of Twitter has repeatedly stated that Bitcoin will become the single currency of the Internet.

“Now is the right time to expand our mostly USD-denominated balance sheet and make a meaningful investment in Bitcoin,” Square said. According to the press release, BTC investments accounted for approximately 1% of Square’s total assets at the end of Q2 2020.

In the fourth quarter of 2020, Bitcoin is expected to strengthen, but a large-scale expansion will begin next year, according to popular analyst Willie Wu.

Meanwhile, in the middle of the week, in about one day, the capitalization of the DeFi decentralized finance market fell by more than 25%, according to the Santiment survey.

Binance has launched an index reflecting the price behavior of tokens deployed in the decentralized finance market. The DEFIUSDT indicator has dropped about 50% in 30 days. That being said, many in the cryptosphere believe the DeFi market has enormous potential.

The fall in the value of the yEarn.Finance (YFI) token to a minimum since the end of August at $ 12,400 on Thursday could have been provoked by the head of the FTX exchange and Alameda agency Sam Bankman-Freed, writes NewsBTC.

“Cooling demand for DeFi supports demand for Bitcoin. Despite the weak dynamics, the BTC dominance index grew by 1.2% over the week. This is the result of a spill-over of funds from altcoins amid growing alertness in the markets ”, – said the team of analysts at FxPro.