Winter Storm Disrupts Major U.S. Bitcoin Mining Operations

A severe winter storm named “Fernan” has caused significant Bitcoin mining disruptions across the United States, severely reducing the network’s hashrate and impacting multiple mining pools.

The storm has increased Bitcoin block times beyond the expected interval, potentially impacting mining difficulty adjustments and market dynamics for BTC. Energy conservation has been prioritized.

Winter Storm Fernan Cuts U.S. Bitcoin Mining by 200 EH/s

The winter storm, named Fernan, swept through the U.S., bringing severe cold, snowfall, and freezing conditions, which prompted Bitcoin miners to reduce their activities to minimize strain on the power grid. Foundry USA, a major player with 23% of the global hashrate, saw its hashrate plunge from 328 EH/s to 139 EH/s. The network saw about 200 EH/s offline, increasing block times to approximately 12.4 minutes.

As a response, mining difficulty is expected to decrease by 15% in an effort to normalize block production speeds. This difficulty adjustment is crucial for maintaining a steady Bitcoin block production rate following such substantial hashrate declines.

The fluctuating Bitcoin block production timeline has prompted concerns among investors and network participants. At this point, there are no public statements from involved companies or industry leaders, although energy grid alerts have been issued. This follows a similar scenario during a winter storm in Texas in 2022, where miners voluntarily reduced operations.

Bitcoin Market Under Pressure from Weather-Impact and Historical Trends

Did you know? In 2022, during a severe winter storm in Texas, Bitcoin miners voluntarily cut operations, showcasing a significant precedent in miner responses to extreme weather conditions.

Bitcoin (BTC) currently trades at $87,877.83, with a market cap of $1.76 trillion and dominance at 59.07%, according to CoinMarketCap. The circulating supply is 19.98 million BTC of the 21 million maximum. Over the past day, BTC has fallen 0.89%, with notable declines of 23.63% over 90 days and a volume spike of 169.26%.

The Coincu research team notes that a continued slowdown in block production due to reduced mining activities could impact trading volumes and liquidity. This situation emphasizes Bitcoin’s vulnerability to environmental and energy challenges, with market players likely monitoring potential innovations that may mitigate future disruptions. Explore cryptocurrency markets on Phemex.