Bitcoin price to Hashrate delta ratio

Historically, Hashrate and Bitcoin prices have a strong correlation. When hashrate increases more than Bitcoin price, it indicates a rise in Bitcoin price soon.

This indicator uses the formula:
Price/hashrate delta ratio = period price delta / period hashrate delta

Whenever the ratio between the price and hashrate of Bitcoin is positive, it indicates that the price is increasing at a faster rate than the hashrate. This, in turn, means that Bitcoin is becoming more expensive compared to any variations occurring in the hashrate. Using the Price/Hashrate Delta ratio, we can determine whether Bitcoin is overvalued or undervalued in relation to the hashrate. This can be a helpful indicator for assessing the current market conditions.

As we can see on the chart that at certain points, the Bitcoin price could have been considered overpriced or underpriced in relation to the hashrate delta.


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