- Bitcoin crash is a natural cycle part of the crypto asset as per Jonathan Miller
- Kraken’s August Market Cap report emphasized that such tremendous performance has been credited to its robust hash rate
- While noting the Bitcoin’s performance over past months, the report warned for the coming months
- According to Kraken Australia CEO, El Salvador’s stance of adopting BTC legally cannot be ignored
The bitcoin crash is a big fear of several newbies in the crypto market. However, several long-term hodlers believe that when the price declines it’s time to buy. Following the scenario, Jonathan Miller, the CEO of the Australian sector of Kraken, one of the leading global crypto exchanges, commented that such corrections are part of the regular cycle. Indeed, such a market crash is a part of the natural cycle for the flagship cryptocurrency. Moreover, he also cited that the adoption of El Salvador is the most pivotal part of the history of BTC adoption.
Bitcoin hash rate is a trigger to its price
Kraken has recently published its 26-page August 2021 Market Cap report and Market Outlook. The monthly intelligence report of the major crypto assets exchange underlined the strong performance of the crypto coin designed by Satoshi Nakamoto. The report emphasized that such tremendous performance has been credited to its robust hash rate.
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According to Miller, a higher hash rate makes the network more resilient and it reflects a robust demand for BTC. Indeed, the factors bolster the flagship coin’s store of value. Moreover, while noting the performance of the asset in previous months, the report warned for the coming months.
Miller intensified it’s unclear what to expect this month and the months ahead. For instance, this month could be the worst performing and least volatile on record for the leading crypto coin.
How is the hash rate a direct catalyst to BTC price?
It is noted that, when BTC reached its all-time high at the price level of $64,899, then the hash rate was also at its peak. Simultaneously, the leading crypto coin went lowdown when the Bitcoin crash was witnessed, when China went for a complete ban on digital assets.
Notably, in July a similar scenario was observed as the price dipped as low as $30k. At the time the Chinese miners were reallocating their operations. Hence, Kraken detected that the level of hashes is a direct catalyst to BTC’s current performance.
El Salvador’s BTC adoption has changed the game
Among the bases enhancing the crypto’s robust market achievement is El Salvador’s official adoption of BTC. According to Miller, the timing of the nation’s stance cannot be ignored. The fact has become a key turning point in terms of the adoption history for Bitcoin. Furthermore, Miller featured the pictures circulating on the social world of people transacting with Bitcoin for burgers and coffee in the nation. Indeed, the scenario signifies the virtual asset’s mainstream adoption.