Bitcoin’s hash rate has regained after losing almost half of its value as freezing temperature leads to massive power cuts.
According to reports, over a million in the US were without power and lost at least 37 lives.
Climate experts called it a bomb cyclone, when atmospheric pressure plummets, bringing blizzard-like conditions to the Great Lakes on the US-Canada border. The vast storm extends more than 2,000 miles [3,200 km] from Texas to Quebec in Canada.
As a result, miners in the Texas region that contributes 14% of the nation’s hash rate were forced to shut down operations. This led to a drop of almost 40% in Bitcoin’s hash rate in the run-up to the holiday weekend.
The quantity of hashes generated by Bitcoin miners as they attempt to solve the following block is used to determine the currency’s hash rate. It is seen to be a crucial indicator of how safe the Bitcoin network is.
Bitcoin’s hash rate, which generally ranges between 225 and 300 Exahashes per second (EH/s), appears to have been affected by the outages. On Dec. 25, this decreased to 170.60 EH/s.
However, according to information from the hash rate mining calculator CoinWarz as of December 26, the hash rate has been restored to 237 EH/s.
However, BTC’s computing power is not the only thing to plummet.
Bitcoin’s Volatility Falls To An All-Time-Low
According to on-chain data, the volatility of the Bitcoin market is at its lowest point ever. Bitcoin volatility levels historically have bottomed out, according to analysts tracking the cryptocurrency market.
Volatility last declined to levels similar to these in late 2018. The crypto market saw a bear market identical to the one we are currently experiencing, with prices declining for the entire year.
After the final flush out on December 15, when BTC dropped to $3,200, volatility spiked once more before the close of that year.
The new low in Bitcoin volatility was confirmed by more experts. Over the previous six weeks, the asset has fluctuated between $15,700 and just over $18,000. Due to the fact that much of the world is on vacation, market activity is not likely to ramp up until next month.