Impact of China’s Crackdown on Bitcoin Miners In Charts, BTC Block Interval Hits 10 Year High

By Bhushan Akolkar
June 29, 2021 Updated June 29, 2021
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China’s recent crackdown on cryptocurrency miners over the last month has resulted in a massive exodus of mining operations to overseas locations. This has had a severe impact on the Bitcoin price which came crashing down under $30,000 levels last week.

With the recent Chinese crackdown, the on-chain activity on the Bitcoin network has significantly changed hitting multi-year milestones. Let’s take a look at how things have changed w.r.t different on-chain parameters.

Key changes on Bitcoin (BTC) Network Amid China’s Crackdown

Bitcoin’s daily mean block interval, the time interval between adding two consequent blocks on the Bitcoin network, has shot to 1400 seconds or over 23 minutes. This has been the largest daily mean block interval over the last decade. This is also 100% more than the baseline of 10-minute block interval.

Courtesy: Glassnode

Earlier on Sunday, June 27, only 58 blocks were minted throughout the day. This was a massive 60% from the average of 144 blocks minted every single day.

On the other hand, there’s an 80% drop in the daily average Bitcoin miner revenue from $70 million in May last month to now at just $12.8 million per day. This is the same revenue that miners were earning back in November 2020 last year when BTC was trading at $13,000 levels.

Courtesy: Glassnode

On-chain data provider Glassnode further reports: “This is in consequence of the shakeup of  Bitcoin‘s hash rate following China’s mining crackdown. It is the largest drop in hash rate in the era of industrial mining. As of today, mining difficulty is expected to drop by ~25% this Friday”. The BTC hashrate has dropped 50% since its May 2021 high. 

As a result, there’s also been a significant decline in Bitcoin network activity. The number of active Bitcoin addresses has dropped to levels last seen during 2019.

As CoinGape reported, for the first time in history, the Ethereum (ETH) active address has surged past that of Bitcoin’s.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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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