- Recent fluctuations demonstrate miners’ adaptability with equipment upgrades and response to shifts in cryptocurrency market prices.
- Older mining models like Antminer S19 and Whatsminer M30 are relocated for cost-efficiency in cheaper electricity regions.
Bitcoin mining continues robustly even after the halving event that was expected to reduce the network’s hashrate, a measure of the total computational power, by up to 20%. Contrary to some analysts’ predictions, the hashrate has only seen a 10% decline from 645 EH/s to 589 EH/s, according to data from Braiins, a mining software company.
Over the last 50 days, fluctuations in Bitcoin’s hashrate have illustrated the nature of the mining industry. For instance, between May 27 and June 1, the network’s computational power spiked to 682 EH/s before plummeting by over 100 EH/s within three days.
Despite this, the hashrate has largely stabilized around 600 EH/s since the halving, contrasting sharply with the period before the event when the hashrate doubled over the year.
These fluctuations are becoming more common as mining companies phase out older, less profitable equipment. At the same time, they are introducing newer models that boast greater computational power and improved energy efficiency.
Popular models like the Antminer S19 and Whatsminer M30 are being sold or relocated to regions with cheaper electricity costs, as reported by CriptoNoticias. If these models were largely disconnected, the drop in Bitcoin’s computational power would be substantial.
An outcome like this would align with forecasts from industry players like Digital Galaxy, which predicted a 20% reduction in hashrate back in April. However, the current trend suggests a different scenario may be unfolding. There are several factors to consider that might hint at a growing engagement in Bitcoin mining.
One significant factor is the recent interest in the token market spurred by the launch of the Runes protocol, which significantly increased transaction fees for several weeks.
Although this interest has waned since mid-May, a potential rebound in these markets could provide enough incentive to keep older equipment operational that would otherwise be shut down without sufficient economic reasons.
Moreover, the recent rise in Bitcoin prices, which have hovered around USD 70,000, might be contributing to a scenario where miners keep less profitable equipment running. Many analysts anticipate that the price will continue to rise, potentially leading to an uptick in June.
In the coming months, large batches of the latest mining equipment, such as the Antminer S21 and Whatsminer M60 series, are set to be deployed. These machines consume less energy relative to the computational power they generate.
If the price of Bitcoin remains stable or increases, we could see a potential growth in the hashrate, continuing the historical trend of Bitcoin’s expansion.
