Bitcoin's Weekly Hashrate Dropped Sharply

Bitcoin (BTCUSD) dropped to $17,622 on June 18th. This marked the first time in Bitcoin history that it fell below its previous cycle high. Aggressive monetary tightening by the U.S. Federal Reserve, a crisis on crypto lending platform Celsius, and liquidity problems at investment fund Three Arrows Capital caused more panic and pain among traders.

The fresh data shows that Bitcoin mining hashrate has already dropped from a new all-time high as the price of the cryptocurrency continues to fluctuate. As we know, “mining hashrate” is a metric that measures the total amount of computing power connected to the BTC network.

When the value of this indicator increases, it means that more mining installations are connecting to the network right now. This trend may indicate that miners currently find the network attractive even despite a falling price.

On the other hand, the decrease in the indicator suggests that some miners are disconnecting their machines from the network, possibly due to low profitability of the process. Typically, high hashrates result in better blockchain performance, while low hashrates can result in slower transaction processing.

The income of miners depends mainly on several things: the value of BTC in U.S. dollars and the total network hashrate. Since miners usually pay their electricity bills and other operating expenses in dollars, the dollar price of BTC is profoundly relevant to them.

The Bitcoin mining weekly hashrate set a new all-time high (ATH) of 231 EH/s just a few days ago. However, the metric has already seen a sharp downtrend over the past two days or so and is now only around 200 EH/s. The recent collapse in the price of Bitcoin implied that miner rewards per block are now worth a lot less.