Bitcoin Hashrate Plummets, Marking Steepest Decline Since 2021 China Mining Ban
CryptoNewsTerminal Staff04 Jun, 2024
Bitcoin Hashrate Plummets, Marking Steepest Decline Since 2021 China Mining Ban
According to CryptoSlate's analysis of Glassnode data, the Bitcoin network's hashrate has experienced a significant 14% drop over the past week, reaching 567 EH/s—a level unseen since July 2021 during China's mining ban. This represents a decline of over 22%, fueled by miner capitulation as indicated by the Hash Ribbons indicator. This substantial hashrate decline is accompanied by a corresponding 5% drop in Bitcoin's mining difficulty, the largest since July 2021. This adjustment, which occurs every two weeks, is intended to maintain a consistent block production time of approximately 10 minutes. The combination of a falling hashrate and decreasing difficulty suggests that Bitcoin miners are facing challenges, potentially due to rising energy costs and the ongoing crypto bear market. However, despite these headwinds, the Bitcoin network remains robust, with an increasing number of transactions being processed on the Lightning Network.
