Bitcoin finds support as hashrate soars
Bitcoin holds steady above $10K
Buyers have stepped back into the crypto market and are holding Bitcoin above $10K.
Each time the cryptocurrency has dropped below this level, bargain hunters have leapt into action–aggressively buying and pushing Bitcoin back up. On the chart, this price action is reflected in a series of long wicks around $10K, suggesting strong support.
Elsewhere, Ethereum is moving up. The second-largest crypto has outpaced Bitcoin again this week, gaining 4% while the world’s largest cryptoasset finishes flat. Even further ahead, small altcoins are winning big, with NEO and BNB making stellar gains on the back of new DeFi products.
This Week’s Highlights
- Altcoins Flourish on Yield Farming Frenzy
- Soaring Hashrate Hints at Higher Prices
Altcoins Flourish on Yield Farming Frenzy
The launch of DeFi protocols on smaller blockchains is spurring demand for Ethereum’s competitors. These altcoins aim to dethrone the smart contract leader by making yield farming more accessible to the masses with lower fees and faster transactions.
NEO is up 11% this past week, with funds flowing in as DeFi project Flamingo prepares to take flight on September 23.
Flamingo will compete with other liquidity swap protocols, including Tron’s JustSwap and Binance’s BurgerSwap, which are finding mixed fortunes in the market. Tron has sunk 5% over the past week, while Binance Coin has surged over 30%.
Soaring Hashrate Hints at Higher Prices
As the price of Bitcoin finds support, the hashrate is skyrocketing.
Data from Blockchain.com shows that hashrate is hitting all-time highs, with the seven-day average moving above 135 exahashes per second (EH/s) for the first time ever.
The higher the Bitcoin hashrate, the more mining power that is committed to the network, and the more secure the blockchain becomes. Historically, this increased investment in the network by miners has eventually reflected in higher prices, creating a long-term correlation between hashrate and price.
The Week Ahead
Presuming the critical $10k level holds, Bitcoin seems bound for further upside.
The ongoing DeFi frenzy continues to drive the broader market upwards, with billions poured into smart contracts over the past week as Tron, Binance, and other players branch out into decentralized finance.
Meanwhile, Bitcoin’s safe haven appeal is stronger than ever. Data from Coin Metrics shows that the 30-day correlation between Bitcoin and gold is at record highs, with both assets likely benefiting from weakness in the dollar.
This safe haven appeal might be bolstered on Wednesday as the Federal Reserve finishes its final meeting before the election. The central bank is widely expected to set new interest rate projections, which could spark volatility across global markets.