On-chain data shows that Bitcoin’s hashrate has dropped more than 20% in the past 24 hours, a bearish signal for the benchmark cryptocurrency.

The Bitcoin hashrate fell by more than 20% on the last day

According to CryptoQuant, the BTC hashrate has dropped sharply in the past 24 hours. Such a trend is usually a bearish signal for BTC.

The hashrate is an indicator of the total computing power connected to the Bitcoin blockchain network.

Validation nodes on the BTC network, known as “miners,” require a lot of computing power to compete with each other to decide who should process the next transaction.

Hence, a high hashrate will make network performance quick and efficient. In addition, a high hashrate also means that a large number of nodes are connected to the network. This leads to better network decentralization and thus to more security overall.

On the other hand, a low hashrate can lead to poor network performance. Security will also be lower due to greater centralization.

The source: KryptoQuant

The graph above shows that BTC’s hashrate has depreciated by around 20% in the past 24 hours alone.

That decline comes not long after the indicator fully recovered from China’s mining raid.

Historically, high hashrate values ​​have been associated with an upward trend, as these values ​​implied that mining on the Bitcoin network would have been profitable for miners at the time.

So the current decline will mean that some miners are finding BTC mining unattractive and have decided to close their facilities.

This could be a bearish signal for BTC in the long run.

BTC price

At the time of writing, Bitcoin is hovering around $ 46,000, down 5% over the past seven days. In the last month it has decreased by 22%.

BTC / USDT daily chart | Source: TradingView

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