Bitcoin computing power dropped by more than 45%, and the price fell by 10%

Since April 15, the Bitcoin network computing power has dropped by more than 49% after hitting an all-time high of 218 exahash/s. Some people in the industry believe that the sharp drop in BTC is related to the sharp drop in computing power, but others suggest that the responsibility should not be so easily attributed to the loss of computing power.

As of this writing, the Bitcoin network hash rate is down 49% after hitting an all-time high (ATH). The data shows that on April 15, the BTC computing power once rose to an astonishing figure of 218 exahash/s (EH/s).

However, almost immediately after that, Bitcoin hashrate began a downward spiral. According to reports from reporters in relevant areas, at the same time when the computing power began to decline, the power grid in some areas experienced power outages.

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“Bitcoin mining pools’ computing power plummeted in 24 hours. Antpool fell 24.5%, Btc.com fell 18.9%, CoinSilver fell 33%, Binance Pool fell 20%,” regional reporter Colin Wu (@wublockchain) tweeted.

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Dovey Wan, founding partner of Primitive Crypto, also talked about related issues the next day. "Bitcoin hash rate dropped by nearly 30% in an instant... It is expected to take about a week to recover. All data centers are also closed," she added.

Nic Carter, co-founder of blockchain data aggregator Coinmetrics.io, also tweeted about Bitcoin's declining hash rate.

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“Regional power outages and their impact on Bitcoin hashrate are what economists call a ‘natural experiment’. A very useful source of data. Power outages are dominated by coal, but not entirely .There’s also plenty of wind and solar — 35% renewable as of 2019.”

“Price and computing power have always been correlated.

This is a comparison of the price of BTC with today's sharp drop in computing power. "

— Willy Woo (@woonomic) April 18, 2021

At the same time, a large number of people said that the price dive is related to the sharp drop in computing power. Larry Cermak, director of research at The Block Crypto, disagrees that the loss of hashrate is so easily blamed. “LOL, if you think the drop in hash rate is the reason for blame, that’s probably not okay,” Cermak said in response to Willy Woo’s tweet.

“Corrections after massive rallies are natural for those looking for an explanation. A weekend of low liquidity is perfect, some looming catalyst scares off traders, and then prices drop. Coinbase’s bid, which ended up being a disappointment as well. No surprise,” Cermak added.

Network Fees Soar, Prices Begin to Follow Hashrate Falls

The topic surrounding BTC computing power has been a hot topic on social media and forums.

Bitcoin’s price hit a low of $51,541 at 11:00 p.m. (ET) Saturday, but recovered some losses during early Sunday trading. At press time, Bitcoin is down 10%, trading at $54,848 per unit. The entire crypto economy is down more than 8% since 11pm last night.

Author: Jamie Redman | Compiler: Maya | Source: News.bitcoin.com

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