While bitcoin prices plummeted this week, the network’s hashrate has also dropped considerably since tapping a high on May 9. Since then, the hashrate has seen swings between 10-15% because of the crypto market downturn, alleged issues with power outages in Sichuan, China, and the upcoming difficulty change.
Similar to the Price, Bitcoin Hashrate Sees Wild Fluctuations
Bitcoin’s hashrate has been fluctuating in recent days after the price of BTC dropped significantly in value during the last week. After some recovery, bitcoin (BTC) market data shows that seven-day stats indicate a weekly loss of 15% on Thursday afternoon (EST).
The network’s hashrate or processing power has also followed the downward slide. There are numerous factors that show why the hashrate has slumped, as bitcoin’s price drop is just one of the reasons.
On May 16, the Bitcoin hashrate of the entire network plummeted, with Antpool -16%, F2pool -11%, Binancepool -14%, and Huobipool -23%. People in the Sichuan industry pointed out that it should be a temporary phenomenon. pic.twitter.com/s3fb37t2mK
— Wu Blockchain (@WuBlockchain) May 16, 2021
Another reason for the hashrate fluctuations stems from reports in China. According to the reporter Colin Wu or “Wu Blockchain” on May 16, “the Bitcoin hashrate of the entire network plummeted.” Wu said that Antpool, F2pool, Binance Pool, and Huobi Pool all saw hashrate percentage losses.
“People in the Sichuan industry pointed out that it should be a temporary phenomenon,” Wu remarked. In fact, the hashrate started climbing northbound again after Wu’s Twitter statements. Wu said, however, that the power consumption in China is in heavy demand at the moment. Wu further stressed:
The main reason is that the local weather is hot
