The hashrate of Bitcoin (BTC) mining pools has plummeted over the last 24 hours.
In a tweet earlier today, a Chinese journalist who goes by the handle @WuBlockchain attributed the Bitcoin hashrate declines to a blackout in Northwest China. The blackout was reportedly put in place for safety inspections.
Wu Blockchain, who reports exclusive crypto news on their website China Crypto News, revealed drops in the multiple pools. Antpools fell by 24.5% in the last 24 hours, BTC.com by just under 19%, Binance by 20%, and Poolin by a considerable 30%.
The Chinese media outlet Wu Talk offered further details on the blackout. Reports indicate that power outages in the Xinjiang region, and the subsequent safety checks “may have a certain impact on related industries in the short term.”
Xinjiang has been the site of recent floods. One such incident in the region trapped 21 coal miners on April 10. The miners have since been recovered. However, the flood caused power outages throughout the region.
BTC mining in China in 2021
Reports state that, as of April last year, over half the world’s Bitcoin mining capacity is based in China. It accounts for a 65% chunk of the hashrate, mostly attributed to its cheap electricity. The Xinjiang region is responsible for a considerable percentage that BTC mining — reportedly between 20 and 36%.
It’s already been a turbulent year for China regarding BTC Mining. Last month, for example, Inner Mongolia announced that all crypto-mining projects would be outlawed by April. This was in a bid for Chinese authorities to meet certain energy consumption and clean air goals. More specifically to reduce energy consumption in the Inner Mongolia region by 1.9% this year. On account of the region’s use of coal-powered electricity, as opposed to the hydroelectric power that other regions use.
Wu Blockchain Tweeted at the time that Inner Mongolia had always had more restrictions on cryptocurrency mining. Meanwhile, regions such as Xinjiang, alongside its fellow major mining provinces, Sichuan and Yunnan, had not taken any action.
Ahead of the mining ban in the Inner Mongolia region, miners reportedly took their equipment to other regions of China or even overseas. Including more stable mines in the Xinjiang region.