Bitcoin’s hash rate dropped dramatically. Companies announce layoffs. Mining companies shut down.
Bitcoin’s hash rate has seen a massive drop to nearly 38% as miners brace for a dramatic change in weather in the United States. As part of the preparations, the miners began to shut down their mining areas as a precaution.
According to a report from an electricity monitoring website, areas near Maine and New York have been without power for some time now. The report says that what is thought to be a bomb blast has fallen, causing terrible weather conditions.
Mining Companies Closed
A new report from a tracking website showed that more than one million homes and businesses lost power for a long time on December 23. The outage also affected Bitcoin miners who decided to close their offices and stop their work.
According to research by Glassnode, the recent crash is the worst the network has seen since the last one in June. Hash rate is a factor that describes the total amount of energy that goes into the processing and production of Bitcoin. This means that the network is very secure if the hash rate is high.
The Weather Does Not Affect The Price of Bitcoin
Extreme weather conditions have spread widely, affecting areas close to the Mexican border. One of the mining centers in this area, Riot Blockchain, recently announced that it is shutting down its operations for the most part.
The company referred to these measures and said that it wants to protect its members from climate threats. Core Scientific also lists others who have stockpiled their equipment, addressing similar situations.
The company said it wants to help the region reduce the cold, thereby closing its operations to help the regional network better serve the people. The company expects that Bitcoin production will decrease during this period, and will probably pick up once the weather cools down.
IntoTheBlock’s analysis showed that the hash rate rose for a short time on Sunday before experiencing this final drop. However, the movement does not have a significant impact on the price of digital assets. Bitcoin has traded well with the greenback over the past few days.