Since April 15, the Bitcoin network’s hashrate has dropped more than 49% after hitting an all-time high of 218 exahashes per second. Regional reports found that China’s Xinjiang network was experiencing power outages and “safety inspections.”
According to reports, power outages in Xinjiang, China have reduced Bitcoin’s hashrate by 49%
At the time of writing, the Bitcoin network (BTC) hashrate is down 49% after hitting an all-time high (ATH). Data shows that the BTC hashrate rose to a massive 218 exahash per second (EH / s) on April 15th.
Almost immediately after this point, the network hashrate began to spin down. As the hashrate dropped, regional reporter Colin Wu (@wublockchain) tweeted about power outages in China.
“The hashrate of the Bitcoin mining pools has decreased within 24 hours. Antpool fell 24.5%, Btc.com fell 18.9%, Poolin fell 33%, Binance Pool fell 20%, ”Wu tweeted. “The reason is that northwest China is going through a complete blackout for safety inspections.”
Primitive Crypto’s founding partner Dovey Wan also spoke about outages the next day. “Xinjiang is facing a major power outage due to a coal mine explosion,” noted Wan. “The Bitcoin hashrate drops by almost 30% immediately. She is expected to recover in about a week. All data centers were also closed, ”she added.
Xinjiang [and] Sichuan together make up well over 50% of the total [Bitcoin] Hashrate. To hope [we] may have more distributed hashrates in the future for reasons of reliability.
Next week’s data could show an estimate of Xinjiang’s hashrate share
Nic Carter, co-founder of the blockchain data aggregator Coinmetrics.io, also tweeted about the situation in China and the drop in the hashrate.
“The failing Xinjiang grid and its impact on Bitcoin hashrate are referred to as a ‘natural experiment’ by economists. [A] very helpful data source. Xinjiang is heavily based on coal, but not exclusively. There are huge amounts of wind and sun – 35% renewable from 2019. [Third] highest renewable share of all Chinese provinces (behind Gansu and Ningxia) (hydropower renewable for the purposes of these data).
Carter added that next week’s decline could show how much hashrat is in the area. He said:
Based on next week’s data, we can estimate Xinjiang’s share of [the] BTC network (assuming we know for sure that the entire network is down – hard to tell based on sparse reports).
Price and hash rate were always correlated.
This is the BTC price versus today’s hash rate collapse (due to the Xinjiang blackout). pic.twitter.com/mywEZLHlA0
– Willy Woo (@woonomic) April 18, 2021
Meanwhile, a large number of people have said that the price decline correlates with the collapse in the hashrate. The Block Crypto Research Director Larry Cermak disagrees that the blame for the loss of hash power can be so easily. “LOL, if you think the hashrate waste was the cause of the dump, you’re ngmi,” Cermak replied to Willy Woo’s tweet.
“For those looking for an explanation, corrections after massive attempts are a matter of course. Low liquidity weekends are perfect, a stupid catalyst to scare off traders and off you go. The markets were bid for Coinbase, which was also disappointing. No wonder, ”added Cermak.
The network fees increase and the price follows the hashrate from Sunday evening
The conversation about BTC’s hashrate has been a trending topic on social media and forums. Compass Mining Co-Founder and CBO Thomas Heller also shared a source of accident at the coal mine.
“The mining operations in Xinjiang closed this morning for inspections – the network hashrate of most Chinese mining basins has dropped significantly,” Heller wrote. “It is related to the accident at the Xinjiang coal mine earlier this week,” he added.
Bitcoin price fell to a low of $ 51,541 on Saturday at 11 p.m. EST, but has regained some losses during Sunday morning trading sessions. At the time of publication, at 7:30 a.m. (EST), Bitcoin (BTC) is down 10% and is trading hands for $ 54,848 per unit. The entire crypto economy has lost more than 8% since 11:00 p.m. last night.
What do you think of the bitcoin hashrate falling over 49% this weekend? Let us know what you think on this matter in the comments section below.
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