Texas Heatwave Triggers 15.8% Drop In Bitcoin Hashrate

The Bitcoin hashrate has recorded its steepest drop in nearly three years, tanking by nearly 16% in under ten days. While geopolitical tensions have contributed to the decline, a scorching summer heat is forcing Texas miners to shut down a part of their operations.

Bitcoin Hashrate Falls By 15.5% – Here’s Why

According to data from Blockchain.com, Bitcoin’s hashrate has fallen from highs of 943 billion terahashes per second (TH/s) to settle at 799.9 TH/s.  The decline represents a 15.8% decline over the last ten days for the flagship cryptocurrency, its biggest fall in nearly three years.

The first cracks in the Bitcoin hashrate appeared after the US launched airstrikes at Iranian nuclear assets. While the geopolitical tensions triggered a crypto market crash, Bitcoin hashrates dipped as Israel and US airstrikes affected Iran’s electricity supply.

Furthermore, the imposition of an internet blackout by the Iranian government aligned with a 2.2% hashrate decline to 865TH/S over the weekend.

However, the biggest driver behind falling Bitcoin hashrate levels is rising summer temperatures in the US. Heat waves in Texas are forcing miners on the Electric Reliability Council of Texas (ERCOT) power grid to reduce their operations.

Typically, the miners turn off their mining rigs for a few hours or even days to protect their hardware as temperatures inch toward 40 degrees.

A Raft Of Factors Affecting Mining Metrics

Apart from rising temperatures in Texas, incoming difficulty adjustments have seen miners temporarily turn off their devices. Some miners are waiting till June 29, a date forecasted for a drop in mining difficulty, to take advantage of the readjustment.

Furthemore, miner revenues have come under pressure since the last Bitcoin halving event, forcing smaller operators to shut down their operations. The combined effects are triggering downward pressure on the Bitcoin hashrate as miner capitulation metrics climb.

As miners take a measured approach to rising temperatures, Texas has created a Strategic Bitcoin Reserve. The Bitcoin Reserve authorizes the Texas Comptroller of Public Accounts to invest in BTC, hinting at steady purchases from the state’s miners

Despite the falling Bitcoin hashrate, BTC price has rebounded to $108K amid peace talks between Israel and Iran. Stocks of public Bitcoin mining companies like Mara Holding and Hut 8 are in the green, defying the declining hashrates.