Over the last 30 days, Bitcoin has recorded a major period of volatility, one wherein the world’s largest crypto-asset suffered a fall down to $7536 on 23 October. This depreciation was immediately followed by a major correction of over 40 percent, a correction that saw BTC attain a valuation of $10,340.
Despite the quick recovery, according to a recent analysis by Coinmetrics, Bitcoin’s hashrate fell significantly, with miners seeming to be holding back hashing power in the short-term.
BTC’s hashrate has registered a tremendous growth of over 120 percent in 2019, which is why the present drop in hashrate came as a huge surprise to the community. The drop also seemed to have an effect on Bitcoin’s price as the king coin plummeted below the $9,000 mark.
After registering an all-time-high of 114.3 TH/s on 23 October, the hashrate was observed to be at 98 TH/s on 5 November. This metric further dropped down to 85.32 TH/s on 7 November. Coinmetrics tweeted,
“The Bitcoin difficulty adjustment is ~5hrs away. Seeing the average block time hover above 10 minutes for most of last week we can expect to see the first difficulty drop since July, breaking a streak of 7 constructive increases.”
The present decline in difficulty was recorded to be the first one since the month of July.
While a confirmed reason for the fall in hashrate wasn’t found, a report has claimed that the end of monsoons in China was one of the major factors behind the same.
Last week marked the end of China’s annual monsoon and as a result, some hydropower stations in China’s Sichuan province did not have the capacity to generate sufficient electricity to power mining rigs and activities.