The amount of computing power on the Bitcoin network has been in decline since October 24. This is due to the seasonal migration of Chinese crypto miners – they move to the provinces with cheaper electricity and temporarily turn off their mining equipment.
From October 24 till now, the hash rate of Bitcoin fell down by almost 27% – from 148 TH/s to 108 TH/s. HASHR8 chief operating officer Thomas Heller explained that this is due to the end of the rainy season in the Chinese province of Sichuan, where many hydroelectric power plants are located.
With the end of the rainy season, which came on October 25, the price of electricity in Sichuan rises significantly. Consequently, the miners begin relocating BTC production facilities to the Chinese province of Inner Mongolia and abroad.
Analysts at the NovaBlock mining pool also believe that the current decline in the hash rate clearly reflects the amount of computing power that is migrating with the end of the rainy season in Sichuan. According to Heller, based on statistics from 10 leading mining pools, the total hashrate of temporarily disabled devices is about 22 TH/s.
Meanwhile, Bitcoin continues to update its annual highs. Today, BTC price on the Binance exchange reached $13,497, having risen 2% over the past day. Since the beginning of September, the cryptocurrency’s price has increased by 37%.
