Is Bitcoin network hashrate an accurate indicator of Bitcoin price?

Declines in Bitcoin’s hash rate have historically coincided with declines in Bitcoin’s price. However, despite the clear long-term correlation, there are other factors that should also be taken into account as they can have a more direct impact on price.
Hash rate refers to the total computing power required to verify transactions on the Bitcoin (BTC) blockchain. As Cointelegraph reported, more computing power indicates greater network security and interest in the profit potential of mining Bitcoin.
Hash rate is a reflection of Bitcoin's value <br />A rise in hash rate is often associated with expectations of BTC price appreciation. Analysts have found evidence that mining difficulty increased after the 2013 and 2016 bull cycles.
For example, the 70% increase in 2021 happened to be associated with multiple investments and large orders for mining equipment. But proving causality is almost impossible.
A few examples include Argo Blockchain purchasing 320 acres of land in Texas to pilot expansion, Bitfury’s US mining subsidiary going public, and the BTC.com mining pool being acquired by a Chinese lottery service.
However, there are also periods of absolute discord, so perhaps there is no direct relationship between Bitcoin price and miner installations.
Although impossible to measure precisely, the seven-day average hash rate produces better results and provides a glimpse into trend changes.

Most likely, 2017 was an exception in terms of BTC price, as Bitcoin entered a phase of parabolic price growth. The hash rate also tripled to 6.8 TH/s by August. But when the hash rate then suddenly dropped by 25% with no noticeable impact on the price, the theory that the hash rate could predict the price was undermined.
On the other hand, Bitcoin’s 132% surge in the last two months of 2017 seemed to be reflected in computing power only a few months later, as the hash rate more than doubled between December 2017 and March 2018.

The second half of 2018 and 2019 provide a more interesting data set as BTC prices faced stronger volatility and periods of stagnation. At the same time, the hash rate doubled from April 2018 to November 2018, reaching a peak of 54 TH/s. Curiously, this peak occurred before BTC's sharp correction to $4,000.
On the other hand, both indicators bottomed out in mid-December 2018, while in the first half of 2019, BTC price and hash rate moved in sync.

In the second half of 2019, the two trends were completely opposite, with the hash rate rising 66% while the BTC price plummeted 38%. This time, the BTC price peaked at $10,200 in mid-February 2020, while the hash rate peaked three weeks later.
The latest data on the current all-time highs in Bitcoin hash rate and price also shows a strong correlation between the two indicators.

Therefore, there is undoubtedly a strong correlation between hash rate and price, and there have also been half a year or more where mining capacity has continued to expand despite BTC price stagnation.
The same is true when Bitcoin hash rate suddenly drops, such as the recent hash rate drop in October 2020, which had no impact on BTC price. Therefore, this indicator does not seem to be reliable for predicting short-term price movements. In other words, hash rate and price trends, although correlated, provide a series of mixed signals that are sure to confuse any trader.
But despite the clear long-term correlation, there are other factors that should also be taken into account as they have a more direct impact on prices. These factors include new mining hardware, regulation, seasonality, geography, and changes in global energy prices. (Cointelegraph)