Price drop accelerated Bitcoin hashrate drop: -10% in just 4 days

Bitcoin hashrate fell in price motivated by the fall of the cryptocurrency.

In what appears to be a direct reaction to the sharp decline in the price of bitcoin (BTC) and the rest of the market, the hashrate, which is the processing power of the network, has fallen almost 10% in just four days.

According to graphics thrown by the Bitcoin mining analysis company Braiins, the sum of the computing power with which transactions are processed in the Bitcoin decentralized network, It has dropped 9.9% since last June 9date when it touched, for the first time, the 241 EH/s.

At the closing of this note, the indicator is at 217 EH/s. Total, 24 EH/s have been lost or disconnected from the network. It is remarkable, considering that only the public mining companies in the United States with the highest hashrate add up to a total of 15 EH/s.

If the graph below is appreciated, the origin of the fall dates back to June 11, 2022, when, after reaching 241 EH/s, a wave of accumulated drops began that, in just 72 hours, it took him to lose a score of billion hashes.

Bitcoin hashrate fell in price motivated by the fall of the cryptocurrency.
The hashrate fell 10% in four days, a decline accentuated by the fall in prices. Source: Brains.

glass nodeanother firm specializing in market analysis and decentralized networks, agrees with Braiins on the hash rate downtrend.

According to this company, the indicator is 193.98 EH/s at the time of writing this article. That is 28 percentage points below the all-time high of last June a result of an increased drop seen for just two days.

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All this happens when bitcoin continues to fall and above USD 23,000, after accumulating 67% falls since it marked its last all-time high of almost USD 70,000, in November of last year. As of publishing this article, 1 BTC is trading at $24,717.88, according to CryptoNoticias Calculator.

Hashprice also down

The drop in the hashrate combines the poor start of the week for the market in general, facing the stressed bear market.

Earlier, we reported that the hashprice, which measures how profitable it is to mine Bitcoin, had fallen to a low of 2 years ago in May. Just 10 cents ($0.10) for every terahash investedenough for the small and medium mining industry to doubt their activity.

Now and with the update of the graphs, the reaction of these miners could be confirmed. With hashrate and hashprice clearly affected, it is plausible to think of a (temporary) disconnection of small and medium miners. It happens that, in addition to facing the low profitability generated by their operation, they have to overcome a high difficulty, greater than 30 trillion (T).

Bitcoin hashrate fell to 10 cents.
The hashprice crashed and fell to 10 cents on the dollar. Font: Hashrate Index.

This is an equation poised to further tarnish the profitability picture, but one that, experience dictates, could change with a volatile jump in cryptocurrency.

In any case, and although the trend seems to be clear, It is still too early to confirm if the Bitcoin hashrate will fall further. It is good to remember that new Bitcoin miners will soon enter operations, which in addition to being more efficient, they will also have greater mining power.

This, added to the projects that other mining companies have planned for this year, such as Bitmain, which plans to install a Bitcoin mining farm in the hands of the Poolin mining pool, which will only operate with Antminer S19 Pro+ Hyd miners (198 TH/ s), one of the most innovative equipment on the market.

So, we have to see the development of the hashrate these days. In CriptoNoticias we will be vigilant to any event.

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