Interesting news. I knew that quite some miners have stopped. I thought that they play on the safe side and will wait for the price to grow before mining again, but dry season lack of hydroelectricity could also be a strong reason.

I agree with the posters above that the hashrate isn't causing a pull back for a couple of reasons.

First of all, the hashrate has never been higher. The recent drop due to the halving plus the events you have described have only taken us back to the same levels we were at at the end of last year, and remains higher than everything from September last year back to the genesis block. When we were pushing $14k back in June, the hashrate was only around 63% of what it is now. When we peaked at $20k in 2017, the hashrate was approximately 15% of what it is now. There is no real correlation between hashrate and price.

Secondly, I don't think what you've described is really that significant. If the links you provide are accurate, than Sichuan contributes 10% of China's hash power, and some but not all of the miners there have stopped or reduced their mining time by 50%. So we are talking about a drop of a few percent in China's hash power, which is an even smaller percentage when considered globally.

Lastly, I wonder if the decreased hashrate may be preventing people from selling their bitcoin. The mempool currently has 70 MB of low fee transactions waiting to be confirmed. A proportion of these transactions will be people who are trying to send their coins to an exchange to sell them, and haven't yet been able to. As the mempool has started to work down in to these low fee transactions over the last few days, so too has the price decreased by a few hundred dollars. I know correlation doesn't equal causation, but I found it interesting nonetheless.

The electric issue in Sichuan has nothing to do with the price of BTCitcoin. There is a correlation between miners switching on when the price of BTCitcoin rises and switching off when the price goes down but they do not control the price of BTCitcoin and i am not sure why people always have these kind of confusions.

I was not aware of the electric issues in Sichuan but there was a considerable hash rate drop after halving.

I think that BTC is not passing the 10k level because it isn't being able to grab enough external investment... the price behaviour is too similar to a bait on a hook, waiting for the big fish to bite and then pump the price... I guess that the world economics is not helping either
As for the hash rate, it has never been higher (statement considering values before the halving), and it has been growing for a long time... as for the price we can't say the same... the hashrate is undoubtedly important as the network health and strenght resides on it, but I don't think it can easily affect the price unless we see a large increase or decrease that might lead to FUD or FOMO

I wouldn’t agree that’s why the price hasn’t reached $10k in the past few days, because if we look at the price movement during this year, we can see that we already had $ 10k + in the first half of February ($10 500 Feb 13), which did not last long. I am of the personal opinion that purchasing power has dropped significantly globally, and that investors are extremely cautious about the possible new big drop in all markets. Some experts have been saying this since the pandemic was declared, referring to the past when several major but strong market corrections followed after the great drop.

Markets are still far from full potential, investors still choose less risky investments and BTC should not be expected to be an exception. The global climate is completely disrupted, and the delay in the rainy season in China is just one of the indicators - a warning has been issued for Europe that this summer will be perhaps the warmest in the history.

^ Mining hash rate may not have a direct effect right now but if the electric issue in Sichuan will not be resolve as soon as possible then we will all experience the impact of this in bitcoins' price. Halving is still the main reason for this hash rate for there are miners who temporarily suspend their mining and that is base on what had happened on the previous halving and the electric issue in Sichuan still has no concrete evidence yet to prove that it is the main reason for a lower hash rate. Since the Sichuan issue has no direct effect on the hash rate than for me it is not the reason as well for the pullback in bitcoins' price.

I can find you 300 articles each quoting Sichuan with anything from 10% to 107%.

Here is 54%:
https://thenextweb.com/hardfork/2019/12/11/bitcoin-cryptocurrency-mining-hash-rate-china-renewable-energy-blockchain/

Here is 70%:
https://news.bitcoin.com/chinese-miners-flock-to-sichuan-for-cheap-electricity-during-the-wet-season/

Everybody is just throwing figures around with no real basis.


No, it's not obvious and it doesn't match anything.
The only thing that matches with the reduction in hash rate is the block reward and I'm getting tired of repeating it:




Price dictates hashrate, simple as that.



Unfortunately, you're missing something, just as the world was missing something, ... mining gear
An s9 went for 3000$ (twice more than at launch!!! and we were already 2 years later and we're talking about used gear)
Simply there was no way for the hash rate to grow, there were no machines left, there was nobody capable of producing them, nobody could produce 20 times more miners that had been produced in history in a matter of less than a year. That's why the hash rate couldn't keep up.

first of all the mining farms purchase large allotments of electric in long term contracts. mining farms are not affected by the daily whims of price and domestic electricity stuff.

its the small hobby miners that actually react with emotion and pool hop/coin hop to whatever coin is most profitable to mine at any time.

in short the ratio of hobby:farm is now more in farms favour because less hobbiests are mining

mining is still above the 80exa long term min.

the 'peak' hashrate should never be seen as the norm day to day expectation
the 'peak' price should never be seen as the norm day to day expectation.

so stop thinking the hashrate should be 120k all the time
so stop thinking the price should be 10k all the time

even 8 years ago there was a term which has and should remain in peoples minds
'volatile'
expect swings in price. expect swings in hashrate

To be honest I can't found any correlation between mining hash rate and Bitcoin price (I would be wrong as well). I strongly believe most of bitcoin investors do not care about hash rate. The question about price pull back then I will say it's just normal behaviour of bitcoin trend. Also there was no notable downtrend as well if you see current volatility. The simple reason is of current pull back, btc going to correction zone after Halving. Mostly article about hash rate likely to create FUD in my opinion and whales could accumulate again.