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Max KeizerOne of Bitcoin's most prominent advocates and currently a Bitcoin advisor to El Salvador's President Nayib Bukele, shared his opinion on why the price of Bitcoin continues to decline now despite major bullish drivers. Among them are MicroStrategy's recent repeated Bitcoin purchases.
After falling from nearly $102,000 to just under $93,000 between January 7 and 9, the world's leading cryptocurrency Bitcoin has regained the $95,700 level and is moving in the range near $95,000. Over the past 24 hours, Bitcoin has lost 2.57% and is trading at $92,933 as of this writing. The main reasons for this prolonged correction were recent geopolitical developments, in particular statements by the newly elected US President and his ally and crypto enthusiast Elon Musk.
Keizer highlights Bitcoin's hash rate compared to the price
The Bitcoin advisor to the President of El Salvador responded to a question from a Bitcoin enthusiast on the social media platform User "Bitcoin price doesn't tell you anything," he added.
Keiser's reference to the BTC hash rate suggests that this metric can tell us a lot more about Bitcoin's health and security at the moment rather than its volatile price. On January 12, Bitcoin's hash rate saw a significant increase of 24.78% from the previous day, rising to 939.75 million terahashes per second (TH/s). In contrast, Bitcoin mining difficulty also rose on that day, now standing at 110.45 trillion.
The difficulty level is adjusted every two weeks and ensures that miners will take 10 minutes to produce a new Bitcoin block, ensuring the health and stability of the network. The rise indicates an influx of new miners, which is good for the network and is likely to eventually have a positive impact on the price of Bitcoin.
Related to
Significant whale activity in Bitcoin declines
According to numbers shared by cryptocurrency analyst Ali Martinez, the number of large Bitcoin transactions has seen a sharp decline over the past 30 days. This metric fell by approximately 52% — from 33,450 to 16,180.
Santiment explained that this is a potential sign that the large cryptocurrency whales are significantly slowing down their trading activity.
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