Bitcoin and Ethereum, the two biggest cryptocurrencies, have struggled so far in 2022, with some predicting further falls could occur.
The price of bitcoin, after crashing from its November peak of nearly $70,000 per bitcoin, lost 50% of its value before rebounding slightly this month. Ethereum and the other top ten cryptocurrencies BNB, solana, cardano and XRP have also rebounded from their lows but remain highly volatile.
Now, as the crypto market braces for a massive $10 trillion earthquake, data has revealed that the computing power of the Bitcoin network hit an all-time high over the weekend, just at the when investors finally started pouring money back into Ethereum funds, breaking a 9-week run. outings.
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Bitcoin’s hashrate — a measure of the computing power used by the Bitcoin network — hit an all-time high over the weekend, hitting 248.11 million tera hashes per second on Saturday. Although bitcoin’s hashrate is not directly correlated to its price, it has skyrocketed with the price of bitcoin over the past couple of years.
A higher bitcoin hashrate indicates an increase in so-called bitcoin miners who use powerful computers to secure the bitcoin network in exchange for freshly minted bitcoins.
Meanwhile, data showed that institutional investors may be feeling more optimistic about Ethereum after weeks of uncertainty.
“Ethereum finally broke its 9-week period of outflows with inflows totaling $21 million last week,” CoinShares analysts wrote in their latest report on digital asset fund flows, with crypto funds combined. recording inflows of $75 million, adding to inflows over the past four weeks. of $209 million.
“Inflows remain relatively minor compared to inflows seen in Q4 2021,” the report authors wrote. “There are regional variations, with $5.5 million inflows in the Americas and $80.7 million inflows in European investment products.”
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Meanwhile, the crypto market is nervously eyeing the outcome of escalating tensions in Ukraine after Washington warned that a Russian invasion could be imminent.
“Bitcoin and the broader digital token space entered the red zone today amid a sentiment of jitters sweeping across financial markets,” Bitfinex’s trading team wrote in a note sent by e-mail. -mail.
“We could again see bitcoin converging with stocks and other risky assets, amid growing concern over a potential Russian invasion of Ukraine. Although by their very nature financial markets are driven by sentiment, the geopolitical risks of which are of crucial importance, one should never lose sight of the unique value proposition – and future potential – that bitcoin embodies.”