Bitcoin Cash Network Sees Record Hashrate Jump, But Price Falls

The Bitcoin Cash (BCH) network has seen a sharp increase in hashrate and block production, indicating a significant change in mining activity.

Data from fork.lol shows that the network’s total computing power has increased by 188%, rising from 3.55 EH/s to a peak of 9.21 EH/s. This sudden jump indicates a significant increase in miner participation or the use of more efficient mining hardware.

The significant increase in hashrate reflects increased mining activity on the BCH network. This increase in computing power is likely due to more miners joining the network and existing miners upgrading their hardware. The jump suggests that miners are finding the BCH network increasingly attractive, possibly due to increased profitability or advances in mining technology.

The hashrate spike has caused significant fluctuations in BCH’s block production rate. On the morning of July 3, the network was producing five blocks per hour. However, as the hashrate peaked, block output jumped to 17.5 blocks per hour before falling back to 11.5 blocks per hour, indicating a correction to a more sustainable level.

These changes in block production highlight the dynamic nature of BCH mining. The initial increase in block output correlates with the growth of the hash rate, as more computing power allows transactions to be processed faster. The subsequent decrease to 11.5 blocks per hour indicates that the network’s difficulty adjustment mechanism is maintaining stable block times.

Despite the increased hash rate and block production, the price of BCH has declined. At press time, BCH is trading at $370.55, down 4.4% from the previous day’s high. The Relative Strength Index (RSI) is 37.01, indicating that BCH is approaching oversold territory. This could provide investors with a buying opportunity, even as the network strengthens.