Bitcoin Hashrate Just Saw Its Biggest Crash Since China Ban


On-chain
data
shows
the
7-day
average
Bitcoin
mining
hashrate
has
just
witnessed
its
largest
plunge
since
the
China
ban
back
in
2021.

Bitcoin
Mining
Hashrate
Has
Just
Observed
The
Sharpest
Drop
In
3
Years

The
“mining
hashrate”
refers
to
a
measure
of
the
total
amount
of
computing
power
that
the
miners
have
connected
to
the
Bitcoin
network.
This
indicator
may
be
used
as
a
direct
representation
of
the
situation
of
the
BTC
miners.

How To Get Free Crypto  

When
this
metric’s
value
increases,
the
old
miners
expand,
and
new
ones
join
in.
Such
a
trend
implies
that
these
chain
validators
find
the
chain
attractive.

On
the
other
hand,
a
decline
in
the
indicator
suggests
that
some
miners
have
decided
to
disconnect
from
the
network,
potentially
because
they
are
finding
BTC
mining
unprofitable.

Now,
here
is
a
chart
that
shows
the
trend
in
the
7-day
average
Bitcoin
mining
hashrate
over
the
past
year:

The 7-day average value of the metric appears to have seen a sharp drawdown in recent days | Source: Blockchain.com

As
displayed
in
the
above
graph,
the
7-day
average
Bitcoin
mining
hashrate
had
set
a
new
all-time
high
(ATH)
on
the
27th
of
May,
but
since
then,
the
metric
has
gone
through
a
steep
decline.

Coinbase Banner  

At
the
ATH,
the
indicator
had
a
value
of
around
657.2
terahashes
per
second
(TH/s),
but
now
it
has
fallen
to
566.8
TH/s,
which
corresponds
to
a
plunge
of
almost
14%.

Back
in
April,
the
Bitcoin
network
witnessed
its

fourth
Halving
event.
Halvings
are
periodic
events
occurring
approximately
every
four
years
that
permanently
slash
the
asset’s
block
rewards
in
half.

The
block
rewards,
which
the
miners
receive
as
compensation
for
adding
the
next
block
to
the
network,
serve
as
the
majority
of
revenue
for
this
cohort,
so
Halvings
can
significantly
damage
their
finances.

As
would
be
expected,
the
Hashrate
declined
following
the
latest
Halving,
as
miners
who
were
already
under
stress
went
underwater.
However,
the
drawdown
didn’t
last
too
long,
as
after
bottoming
out
in
mid-May,
the
metric
found
a
reversal
to
a
strong
upside.

FreeBitcoin Banner  

Some
thought
that
this
rise
to
a
new
ATH
signaled
that
the
miner
capitulation
induced
by
the
Halving
had
ended.
The
latest
crash
would
suggest
that
this
increase
may
have
just
been
a
temporary
deviation,
as
the
Hashrate
is
now
back
in
line
with
its
prior
decline.

To
put
the
plunge
in
the
metric
into
perspective,
analyst

James
Van
Straten
has
posted
a
chart
showing
the
percentage
changes
in
the
indicator
over
the
past
few
years.

Looks like the value of the metric has just witnessed a huge negative spike | Source: @jvs_btc on X

As
is
visible,
this
negative
movement
in
the
Bitcoin
Hashrate
is
the
largest
since
the
one
witnessed
in
mid-2021.
This
past
crash,
which
was
of
an
even
larger
scale,
had
occurred
due
to

China’s
ban
on
BTC
mining
in
the
country.

Back
then,
China
held
a
significant
share
of
the
global
Hashrate,
so
the
ban
took
a
large
amount
of
BTC
computing
power
offline.
The
metric
didn’t
recover
until
the
miners
could
finish
their
relocation
to
other
nations.

However,
while
that
earlier
crash
was
larger
in
scale
than
the
recent
drawdown,
it’s
hard
to
say
if
the
current
miner
capitulation
has
even
ended.
The
metric
may
continue
to
decline
shortly
and
eventually
surpass
the
scale
of
the
Hashrate
decline
from
2021.

BTC
Price

At
the
time
of
writing,
Bitcoin
is
trading
at
around
$69,800,
up
more
than
3%
over
the
past
week.

The price of the asset appears to have been moving sideways recently | Source: BTCUSD on TradingView

Featured
image
from
Dall-E,
Blockchain.com,
Glassnode.com,
chart
from
TradingView.com

Go to Source
Author: Keshav Verma


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.