- The Bitcoin hashrate has rebounded after a quickfire 33% drop
- U.S. miners were forced to shut down to reduce demand on the electricity grid following a deadly storm
- The hashrate has rebounded 23% in the days since the bottom
The Bitcoin hashrate has rebounded after a near 33% drop caused by a deadly storm in the U.S. The storm, which has led to dozens of deaths and knocked down power lines, saw over 315,000 homes and businesses losing electricity on Christmas Eve. This meant a huge surge in demand on the power grid, leading to miners needing to curtail their operations to allow electricity to go where it was most needed. This caused a temporary dip, but the hash rate has since bounced 23%
Dip to August Levels
The Bitcoin hashrate has been at all time highs in 2022, which has contributed to many mining companies feeling the pinch as low Bitcoin prices mean they are operating out of pocket. However, as data from Coinwarz shows, that hashrate dropped significantly on the 24th:
The swift recovery shows that miners have started to come back online now that the storm has passed, and even at its lowest during this drop the Bitcoin hashrate was still over 2.7x what it was five months ago, illustrating the amount of power being dedicated to protecting the Bitcoin network in the back end of this year.
Quick Recovery is Testament to its Design
The fact the Bitcoin network can effectively see 30% of its power temporarily removed and still operate at full functionality is testament to its design. This was equally evident last year when the ban on Bitcoin mining in China led to the hashrate collapsing 50% in a six-week period, only to recover within six months and go on to make the new highs from which Bitcoin has recently fallen.