The cryptocurrency market continued to be volatile this week. As a result, at the time of writing, the global cryptocurrency market capitalization has only increased by 1.71% over the past day to $1.07 trillion. Bitcoin followed suit, up 0.82% in the last 24 hours at press time.
In terms of price, when we compare the state of the cryptocurrency market to that of the last month, there will undoubtedly be an improvement. Interestingly, on the network side, things are also improving.
Bitcoin mining recovery
Miners were at their best until May and June, recovering from the May 2021 crash. The hash rate hit an all-time high in June. But with the June crash, the hash rate dropped to 202 Eh/s.
Bitcoin Hash Rate | Resources: Glassnode – AMBCrypto
As a result, mining difficulty also started to drop and hit a four-month low.
The reason behind this is the disappearance of miners who had to shut down their machines due to rising operating costs and falling profits. This is because prices have fallen.
Bitcoin mining difficulty | Resources: Glassnode – AMBCrypto
Although the Puell multiple has recovered from extreme stress territory a month after hitting a 3-1/2-year low, it still shows that miners are under pressure.
Bitcoin Puell Multiples | Resources: CheckOnChain
But now things are looking up for these miners. Globally, things are improving as countries and companies grow.
Just recently, the Iranian Energy Ministry changed its crypto mining regulations to simplify access to renewable energy for authorized entities to mint digital currencies in the Islamic Republic.
This would allow miners to buy electricity produced through renewable energy from anywhere in the country at a much cheaper price. So far, the facility has been limited to the province where the mining facility is located.
Additionally, Bitcoin mining company BitFarms has also announced the completion of the second phase of the “The Bunker” mining facility it has been developing.
This further boosted its hash rate as the company added 9,450 new miners. Therefore, the total computing power reaches 3.8 Eh/s. The third phase will add another 3,250 miners.
These developments will allow the mining industry to expand rapidly. Thereby making up for the miners who quit. And, in return, recover the lost hash rate.
