Rising Hash Rates Spark Optimism for Bitcoin’s Recovery

Despite Bitcoin’s recent significant drop, Cryptoquant’s founder, Ki Young Ju, has found reason for optimism.

He highlights the increase in hash rates and growing miner activity as key factors that could signal a potential price surge for Bitcoin in the near future.

While Bitcoin saw a notable decline in February, falling to $85,000 from its previous highs and losing 10% of its value, Ju remains bullish. He points to the steady rise in Bitcoin’s hash rate, which recently hit an all-time high of 936.64 EH/s, as an indicator of growing investment in the network’s security.

The founder suggests that when network security investment slows down, it may signal that Bitcoin has absorbed enough capital, marking a good time to sell.

Despite the price downturn, the number of Bitcoin miners continues to grow, approaching the 5 million mark. Ju also stresses that investment in Bitcoin’s network has never ceased in the past 16 years, reinforcing his belief that Bitcoin could still experience a rally.

However, challenges remain, as 59,000 Bitcoin options, worth $4.68 billion, expired recently, casting doubt on any immediate price recovery. Additionally, Bitcoin ETF outflows amounted to $3.5 billion in February, leaving analysts uncertain about the future trajectory. Some investors, however, are optimistic, hoping that upcoming announcements could drive a positive market shift.