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The leading cryptocurrency suffered a significant disruption recently, causing altcoins to experience even worse conditions. After the recent price drop, some investors who bought the dip faced losses, with three-month declines exceeding 50% for certain cryptocurrencies. Nevertheless, one prominent altcoin, Bitcoin Cash (BCH), is displaying intriguing signals despite reaching a three-month low.
What’s Driving the Hashrate Increase?
Bitcoin Cash’s price fell to a three-month low and is at risk of further declines. Conversely, there was a notable surge in mining power, as reported by CoinWarz, which indicated that the hashrate rose to 8.54 ExaHash (EH/s). The last comparable level was in November 2018, when it reached 7.79 EH/s. Despite the price drop, the mining difficulty has hit an all-time high, suggesting stronger network security. Although this increased miner interest should signal a bullish outlook for Bitcoin Cash, prevailing negative market sentiment has disrupted this balance.
Why Are Miners Focusing on BCH?
Analysis from The Bitcoin Cash Podcast attributes the increase in hashrate to a miner named Pheonix, who continues to strengthen operations while holding a significant portion of the newly minted BCH. This substantial acquisition of coins indicates a bullish stance on BCH trading. The disappearance of profitability for many devices due to the BTC halving has led to anticipated interest in alternative networks, but the intense demand for BCH remains surprising.
