Coindesk reported that due to the onset of the North American summer heat wave and the initial weakening of competition among miners after the halving, the Bitcoin network computing power has declined significantly in recent weeks. Data analysis platform Luxor Technologies pointed out that the mining difficulty and The level of competition may also gradually slow down, allowing the Bitcoin market price to gain support.
Bitcoin network computing power drops in summer
With the impact of the Bitcoin halving event fermenting, the profitability of major miners has also been squeezed in this already overcrowded industry, and has declined significantly in the past two months.
Average daily income of Bitcoin miners (7-day moving average)
At the same time, even though some miners have temporarily increased the Bitcoin network computing power through large-scale mining machine upgrades to resist the increasing competitive pressure, according to Hashrate Index data, the Bitcoin network computing power has since It has continued to fall since reaching a record high in May, and has dropped by about 10% to 589 EH/s.
The computing power performance of the Bitcoin network in the past year
In this regard, Blockware Intelligence analysts said that in addition, Bitcoin computing power usually performs flat or declines during the North American summer:
ASICs are large, powerful mining rigs, and without proper cooling, they can reach very high temperatures.
He added, “Heat dissipation is the primary challenge currently faced by Bitcoin miners.”
Luxor analyst Colin Harpe agreed:
As we enter summer in the U.S., we look forward to seeing whether a heat wave forces miners to curtail operations, inhibiting hash rate growth, as we saw in 2022 and 2023.
Mining difficulty may be lowered
Therefore, miners must face a choice: consume more electricity costs to create cooling measures, or reduce the scale of operations to reduce operating costs.
Harpe predicts that U.S. miners may reduce the scale of operations due to rising energy costs:
If computing power continues to decline, miners may see a reduction in mining difficulty this week, and lower computing power and difficulty may be beneficial to some miners.
He added, "The above data are complementary to each other and may slow down competition in the mining industry first."
Major miners are actively integrating procurement
Faced with the decline in miners' profitability after the Bitcoin halving and the current miserable situation in the encryption market, major miners are also committed to further mergers and integrations.
Among them, the latest announcement from the mining company CleanSpark stated that it will acquire 5 Bitcoin mining facilities in Georgia for US$25.8 million, which is expected to increase the company’s total computing power to more than 20 EH/s by the end of June.
CleanSpark CEO Zach Bradford said:
These locations not only enhance our ability to cooperate with local energy infrastructure, but also ensure that our mid-year computing power goals are achieved and achieved.
On the other hand, the hostile merger between miners Riot Platforms and Bitfarms also continues to unfold.
(The mining company merger and acquisition case is spreading! Riot hits back at Bitfarms and continues to increase its stake to 14%: there is no communication between the two parties)
The tangle between mining companies and politics
Last week, Trump met with large mining companies such as Riot Platforms and CleanSpark, pledging to protect Bitcoin mining, and expressed the hope that all remaining unmined Bitcoins could be mined by American companies.
During fundraising events at the beginning of the month and his 78th birthday events, Trump also repeatedly emphasized that he would become the "cryptocurrency president" and end Biden's war on cryptocurrencies.
(Trump vows to end the encryption law enforcement war and advocates the entry of the encryption industry into Florida)
This article Miners take a breather! Report: Bitcoin computing power and mining difficulty may decline in the summer, and competition will slow down. First appeared on Chain News ABMedia.
