Bitcoin Miners Bag $16.7M in a Day as Mining Outage Mount Backlogs

Published April 21, 2021 | Updated April 21, 2021

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Bitcoin Miners Bag $16.7M in a Day as Mining Outage Mount Backlogs

The power outage in North China on April 15 led to a sharp decline in the Bitcoin mining hash rate up to 20% as the majority of Bitcoin mining farms are concentrated in China. The decline in mining hashrate has led to a major backlog in transaction processing as well, leading to a mounting transaction fee. The high mining fee has earned Bitcoin miners nearly $16.7 million over the past 24-hours.

The backlog has limited the number of transactions that can be verified in a given period, as a result, some people have even complained about their transaction being pending for over 9-hours. Many have attributed the recent Bitcoin price correction to the mining outage in China leading to a war of words among analysts on the impact of the mining power outage.

The controversy started when many claimed that the Bitcoin network’s hashrate dropped by 40% on April 18, however, others pointed out the fact that the Chinese power outage took place on April 15 and the drop in mining hash power was not more than 20%.

Would Bitcoin Bounce Back?

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The network clogging caused by mining power deficiency has been a topic of discussion in the crypto-verse over the past week as Bitcoin retraced to sub-$54K levels from its new ATH of $64,683. Apart from the mining hashrate drop most of the on-chain signals are still flashing bullish with the exchange supply of BTC seeing a continuous decline.

Bitcoin price is currently consolidating above $55k with $54K being the immediate support. With a drop of nearly 10% on April 18, the correction was nothing out of the ordinary as the top cryptocurrency has seen correction in upward of 25% this by season.  In comparison, the 2017 bull market saw a total of 12 dips ranging from 10% to 25% and 6 major corrections ranging between 30%-40%. While during the ongoing bull run BTC has experienced only one such major pullback, thus indicating the market is still strong enough to continue the bull run.

 

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Prashant Jha 823 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
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