Hashrate (or hash rate) is a measure of the total computational power being used by a Proof-of-Work blockchain network to process transactions and mine new blocks. Measured in hashes per second (H/s), with modern networks measured in terahashes (TH/s), petahashes (PH/s), or exahashes (EH/s), hashrate is one of the most important indicators of a blockchain network’s security, health, and miner confidence.
A higher hashrate means: more miners are participating; the network is more secure (a 51% attack requires controlling more computing power); miners believe the asset is profitable to mine (a bullish signal); and the blockchain is more resistant to manipulation. Bitcoin’s hashrate has grown from a few gigahashes in 2009 to over 600 exahashes/second by 2024 — a staggering increase representing the enormous scale of global mining infrastructure.
Hashrate and price have a long-term positive correlation: rising prices attract more miners, increasing hashrate. When hashrate drops significantly, it often signals miners are shutting down (unprofitable), which historically has corresponded to market bottoms. The Hash Ribbons indicator uses miner capitulation (hashrate decline) as a buy signal for Bitcoin.
Example: After Bitcoin’s price dropped below $16,000 in November 2022, many miners became unprofitable and shut down machines. Bitcoin’s hashrate fell ~15% — a signal that miner capitulation had begun, historically indicating a market bottom near price trough.
Learn more: Blockchain.com — Bitcoin Hashrate Chart
