Bitcoin Hashrate Reaches All-Time High Of 491 EH/s, Close To Half A Zettahash, As Network Preps For Next Difficulty Change

Following the acquisition of First Republic Bank by JPMorgan Chase, several regional banks such as Pacwest and Western Alliance experienced a significant drop in their stock prices. On Tuesday afternoon, all four major U.S. benchmark stock indexes are in decline as regional bank stocks hit new lows.

Pacwest, a regional bank based in Beverly Hills, California, is facing challenges after the release of its 2023 first quarter earnings report. Following the publication of the earnings, the bank’s stock price plummeted by 35% on Tuesday at 11:00 a.m. Eastern Time. The earnings report revealed a “net loss available to common stockholders of $1.21 billion, or a loss of $10.22 per diluted share.”

The upheaval at Pacwest comes on the heels of First Republic Bank’s recent collapse and three major bank failures that occurred in March. Despite three out of these four banks representing the largest bank failures in the United States, President Joe Biden reassured the public on Monday that the banking industry is on track toward “stabilization.”

Besides Pacwest shares dropping over 35%, trading was halted due to volatility concerns. Other banks experiencing losses on Tuesday include Western Alliance and Metropolitan Bank, whose stocks have also seen sharp declines during today’s trading sessions. Amidst this turmoil within bank equities, CFRA analyst Alexander Yokum told Marketwatch that while taxpayers will not be responsible for these failures, financial institutions are likely to increase fees.

“All the costs of bank failures will be borne by banks and not taxpayers, although we expect banks to indirectly pass along many of these costs to customers through higher fees and higher interest rates on loans,” Yokum stated.

The collapse of First Republic Bank has left Wall Street investors uneasy, even though JPMorgan Chase CEO Jamie Dimon declared on Monday that “this part of the crisis is over” after taking over the struggling bank. While conventional equity markets are down, cryptocurrencies and precious metals have experienced growth amidst the banking industry’s tribulations.

Notably, the top two leading cryptocurrencies, bitcoin (BTC) and ethereum (ETH) increased by 1.1% to 1.5% in the wake of Wall Street’s turmoil. Concurrently, the precious metals gold and silver have also surged in value against the U.S. dollar, with gains ranging between 1.4% and 1.54%.

After sinking more than 35% on Tuesday, Pacwest shares rebounded and are currently down between 22% to 27% against the greenback.

What do you think the future holds for the U.S. banking industry? Share your thoughts in the comments section below.

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons, JHVEPhoto / Shutterstock.com

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales

Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% ... read more.

Following the acquisition of First Republic Bank by JPMorgan Chase, several regional banks such as Pacwest and Western Alliance experienced a significant drop in their stock prices. On Tuesday afternoon, all four major U.S. benchmark stock indexes are in decline as regional bank stocks hit new lows.

Pacwest, a regional bank based in Beverly Hills, California, is facing challenges after the release of its 2023 first quarter earnings report. Following the publication of the earnings, the bank’s stock price plummeted by 35% on Tuesday at 11:00 a.m. Eastern Time. The earnings report revealed a “net loss available to common stockholders of $1.21 billion, or a loss of $10.22 per diluted share.”

The upheaval at Pacwest comes on the heels of First Republic Bank’s recent collapse and three major bank failures that occurred in March. Despite three out of these four banks representing the largest bank failures in the United States, President Joe Biden reassured the public on Monday that the banking industry is on track toward “stabilization.”

Besides Pacwest shares dropping over 35%, trading was halted due to volatility concerns. Other banks experiencing losses on Tuesday include Western Alliance and Metropolitan Bank, whose stocks have also seen sharp declines during today’s trading sessions. Amidst this turmoil within bank equities, CFRA analyst Alexander Yokum told Marketwatch that while taxpayers will not be responsible for these failures, financial institutions are likely to increase fees.

“All the costs of bank failures will be borne by banks and not taxpayers, although we expect banks to indirectly pass along many of these costs to customers through higher fees and higher interest rates on loans,” Yokum stated.

The collapse of First Republic Bank has left Wall Street investors uneasy, even though JPMorgan Chase CEO Jamie Dimon declared on Monday that “this part of the crisis is over” after taking over the struggling bank. While conventional equity markets are down, cryptocurrencies and precious metals have experienced growth amidst the banking industry’s tribulations.

Notably, the top two leading cryptocurrencies, bitcoin (BTC) and ethereum (ETH) increased by 1.1% to 1.5% in the wake of Wall Street’s turmoil. Concurrently, the precious metals gold and silver have also surged in value against the U.S. dollar, with gains ranging between 1.4% and 1.54%.

After sinking more than 35% on Tuesday, Pacwest shares rebounded and are currently down between 22% to 27% against the greenback.

What do you think the future holds for the U.S. banking industry? Share your thoughts in the comments section below.

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons, JHVEPhoto / Shutterstock.com

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament

A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.

While the next difficulty change for Bitcoin is just two days away, the network’s hashrate soared to unprecedented heights, reaching 491.15 exahash per second (EH/s) on May 02, 2023, at block height 787,895. This staggering amount of computational power came tantalizingly close to a half zettahash or five hundred quintillion hashes per second.

On the second day of May 2023, Bitcoin’s hashrate achieved a remarkable feat, tapping into a new record at block height 787,895. In a stunning display of computational power, the network reached a 24-hour high of approximately 491.15 EH/s. This momentous spike in hashrate comes at a time when the network has been recording an average of roughly 344.4 EH/s over the past 2,016 blocks, with the hashrate dipping below the 300 EH/s range on five separate occasions since April 2, 2023.

However, the month of April has seen slower block intervals, with block times consistently exceeding the ten-minute average over the 30-day period. The consequences of Bitcoin’s slower block times have been significant, leading to a notable backup in the mempool. As of 8:30 a.m. Eastern Time on May 2, data shows that a staggering 240,000+ transactions remain unconfirmed.

The latest surge in hashrate follows a previous milestone achieved on April 18, 2023, when the network tapped 440.80 EH/s at block height 786,013. However, Bitcoin’s current all-time high of 491.15 EH/s is even more impressive, and awfully close to a half zettahash. To put this into perspective, a zettahash represents an astronomical number of hashes, equivalent to one sextillion hashes per second.

In a recent report by Bitcoin.com News, research analyst Sam Wouters from River Financial made a bold prediction that Bitcoin could enter the zettahash era in two years’ time. Wouters’ estimates suggest that “at the current growth rate in 2023, we’d reach a Zettahash by the end of 2025.” Despite the network’s quick all-time high in hashrate, block times continue to lag behind the ten-minute average, and a downward difficulty adjustment between 1.22% to 2% is expected.

At the time of writing, Foundry USA reigns as the top mining pool, boasting 107.66 EH/s or 31.17% of Bitcoin’s total hashpower. Foundry is followed closely by Antpool with 80.75 EH/s, F2pool’s 42.62 EH/s, Binance Pool’s 29.91 EH/s, and Viabtc’s 23.18 EH/s.

What are your thoughts on Bitcoin’s soaring hashrate and the predicted entrance into the zettahash era? Share your opinions in the comments section below.

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.