The hashrate of the Bitcoin network decreased after authorities in China’s Sichuan region turned off the electricity to 26 mining facilities.
After officials in China’s Sichuan province shut down 26 mining rigs, the amount of computing power underpinning Bitcoin fell by 16.94 percent in the last 24 hours.
Bitcoin’s price may be harmed by falling hashrates. Outages in Xinjiang reduced Bitcoin’s hashrate by 30% in April, contributing to a $10,000 drop in the price.
Bitcoin dropped 5.71 percent to $34,205 this time. This is a smaller drop than many of the top 20 cryptocurrencies by market capitalization.
The shutdowns hurt some mining pools harder than others, which were more diverse. BTC.com data shows that mining pool BTC.TOP has dropped from 11th to 15th place after losing 51.39 percent of its hashrate. Antpool.com, the largest pool, lost 14% of its hashrate.
The future of Bitcoin mining in China appears to be dismal. It’s a major deal for Bitcoin; according to some estimates, China provides around 65 percent of the processing power that powers the Bitcoin network.
For much of the year, Sichuan is particularly popular. The excess cheap hydroelectric power generated by massive dams is used by miners.