Bitcoin Hashrate's Wild Swing
Bitcoin mining witnessed significant volatility this week. The hashrate plummeted to approximately 660 EH/s, its lowest point since summer 2024, before rebounding by over 30% in a single day, exceeding 1000 EH/s.
Hashrate Fluctuations and Geopolitical Events
This dramatic shift underscores the sensitivity of mining operations to external factors. The drop to 660 EH/s coincided with US strikes against Iran and subsequent retaliatory actions. Reports suggest some miners in the region temporarily shut down as a precaution. While Iran once contributed nearly 4% of the total hashrate, its current share is around 0.10%. US-based mining remains dominant, accounting for over 35% of global hashrate.
Environmental Factors Impact Mining
A severe heatwave in Texas also played a role, significantly increasing cooling costs for mining operations. Reduced hydroelectric power output in parts of China and Canada during the summer months further contributed to the hashrate dip. Many facilities opted to temporarily halt operations rather than incurring losses. This highlights the interconnectedness of energy supply, weather patterns, and Bitcoin mining.
Data Center Activity Fuels Hashrate Rebound
The subsequent sharp increase in hashrate is attributed to several large-scale, next-generation data centers resuming operations after maintenance or testing. These large facilities significantly impact the overall network hashrate. While initial reporting might exaggerate these jumps, the network hashrate remains near its all-time high.
Difficulty Adjustment Provides Relief
A June difficulty adjustment, resulting in an approximately 8.5% decrease, eased the burden on miners. The estimated cost to mine 1 BTC is currently around $98,000, providing a buffer considering the recent price hovering around $107,000-$108,000.
Ensuring Network Stability
The Bitcoin mining landscape is evolving. Operations are becoming increasingly organized and cost-conscious. Minor shifts in energy prices or weather can significantly impact mining activity. This emphasizes the need for robust infrastructure and adaptable strategies.
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