If there's one very interesting factor in crypto its the entire mining space. Billions if not trillions of dollars have been invested in infrastructure, building rigs, power consumption and so on all to create a massive economy fuels for the future.
There's what I feel is an important factor to look at when it comes to crypto prices and that's mining or hash rate.
Here's a hash rate chart for bitcoin over the last three year.
Put that up next to roughly the same time frame as the price of bitcoin and it starts to spell what I would consider a very bullish and primed break out that is wanting to happen.
The reason I say this is you can see when the price dip happened and the mining power dipped. This is when China and later a few others started to crack down on miners and boot them out. Since them the hash rate has quickly recovered and the price has recovered as well. However we are now in what I would consider the new floor which ranges around $35,000 - $45,000 and continues to bounce around in this area all the while mining power continues to increase.
One thing that comes to mind is when is the next bitcoin halving as we have seen in the past this price impact is often in a year ahead of time and not actully when the halving event takes place. Instead it's often sold during the halving event for bitcoin.
At the moment we are pretty much right in the middle from when the last halving took place and when the next one is set to take place. That leaves us with a total of roughly 745 days or just over two years.
You can view bitcoin halving events countdown here
What does that tell me?
There most likely won't be a huge rally this year. Sure I do see us hitting 60k again this year at least touching it but that 100k I don't see happening until Summer of 2023 and possibly exploding from there into winter 2023 and early 2024.
Before there was only Bitcoin and from there only a few options such as Bitcoin, Doge, Ethereum and Litecoin. Today we have a huge amount of options but many are still falling short while Bitcoin holds its value.
If we look at past rallies we can see that the coloration between halving events mainly. We also see that it always happens in winter or towards the start of the year your October to March time frame while summers are often times moved into altcoins which is something we may see this summer and not so much on the cores such as Bitcoin or Ethereum (especially since the upgrade to Ethereum is delayed till at least Q3)
*This article is for entertainment purposes only and is not financial advise. Do your own research before investing and understand the risks. Above all take responsibility for your own actions.
