Bitcoin hash rate rose to an all-time high, reaching 105,000th block since the last halving of 2020.
On 5th May 2022, Bitcoin (BTC) made a milestone mining trek, blasting through the halfway point en route to the next halving. Block number 735,000 was mined around 10:29 AM UTC (coordinated universal time), crossing the halfway point to the next halving. This particular block was mined by Poolin, who received 0.16215354 BTC in fees.
Bitcoin Halving and Issuance Rate
Halving happens after every 21,000 blocks, and 5th May 2022 was the crossover point for Bitcoin, hopping into the next phase of 105,000 blocks. Some Bitcoiners, such as Samson Mow, urged crypto enthusiasts to consider halving as a reminder to stack more coins.
The halving cycle is very important in defining the issuance rate of new Bitcoins. Because of the halving cycle, the supply of Bitcoins goes down, helping to increase the value of the native coins that are still locked in the blockchain awaiting mining.
The halfway mark on Thursday, 2022, at 10:29 AM UTC was a milestone because it marked the 19-million mark. Therefore, the issuance rate now is 6.25 new Bitcoins per block (every 10 minutes). It also means that with every new block, about USD 250,000 worth of BTCs is minted.
Next halving is expected to happen around April 2024, and the halving cycle will continue until about 2,140, when all BTC are mined. The events that accompany halving, especially the issuance rate and supply shock, come with a huge impact on the BTC price.
Bitcoin Hash Rate, Price Hits a Record High Halfway to the Next Halving, Uptrend Short-Lived
Since 2012 halving, the price of Bitcoin has increased by a factor of 100. The price before halving mid-point this week’s Thursday did a four-fold, surpassing the USD 40,000 mark. This was a huge uptrend following a worrying bear trend in the recent few weeks. On Wednesday, the price had tumbled by 6% to settle at USD 36,000. The new price after reaching the midpoint was a great relief for Bitcoin enthusiasts and the crypto market, but the celebration was short-lived.
The Bitcoin mining hash rate also hit a new all-time high. Overnight on 4th May 2022, the hash rate reached 249.1 exahashes per second (EH/S), surpassing the rate of the previous day by one exahash. With the higher hash rate, it implies that the Bitcoin network’s security is even stronger.
The celebration of the high price caused by the Thursday halfway journey to halving was cut short on Friday following the Federal Reserve’s announcement that it was pulling the interest rate up by 0.5%. When the news was released, about USD 100 million was wiped off the combined crypto market cap, but BTC was the biggest loser, plummeting by 8.4% to hit an all-time low of US$ 35,642 in 2.5 months.
Every Bitcoin halving is followed by a steady rise. In 2020 (the most recent halfing point), the price of BTC rose from USD 8,821.42 at halving to USD 10,943.00 150 days later. So, will BTC price overcome the strong bear run trend reported in recent months, or overcome the current geopolitical upheavals and regulatory uncertainty to post a bullish trend? Only time will tell.