The computing power on the Bitcoin blockchain has dropped 30% from its traditional levels.
Since this weekend, a large cold snap accompanied by storms has hit the United States, and it is not without consequences for cryptocurrencies. Thus, the -45 degrees in some places had an impact on electricity consumption, which means that some bitcoin production sites (also called “mining farms”) found themselves without electricity, which is necessary for the operation of the machines.
In this context, some bitcoin mining companies had to stop their activities. This is the case, for example, with the giant Riot Blockchain or even Core Scientific, although the company has recently gone bankrupt. This weekend, computing power on the Bitcoin blockchain (also known as “hash rate”) dropped by 30% at times from traditional levels, according to data from CoinMetrics.
However, this has not had too much of an impact on the price of bitcoin in recent hours, which remains stable below $17,000. But be careful, as other hashrate reductions may take place over the next few hours as the storm in the US is still not over. The US currently accounts for more than 37% of the global bitcoin hash rate, the highest rate in the world according to the Cambridge Center for Alternative Finance.