Bitcoin Hashrate Nosedives 40% in Flash-Crash as Bitcoin Price Slumps

[GMoore87]

Bitcoin's network has gone from hero to zero this month as a prior rally for bitcoin's hashrate took a swift dive down 40%

https://www.ccn.com/bitcoin-hashrate-flashcrash-price-slump/

[1714157930]

1714157930

[1714157930]

1714157930

[1714157930]

1714157930

[1714157930]

1714157930

[leowonderful]

Seems like that drop in hashrate preceded a sharp drop in the price of Bitcoin today as the article you linked was published many hours before this, though I wouldn't say these two events are linked together for sure (though it's definitely possible). I also don't think there's a definite correlation either to the price of Bitcoin and the network hashrate either, though miners do likely control a decent amount of the supply of Bitcoin and they definitely do have an impact on prices as well, especially when operations sell coins to cover operating costs and fees. Bitcoin's price dropping certainly doesn't help miners out, though, especially with the uptrend that network difficulty and hashrate has been in for a while.

[Kemarit]

I log the estimated network hash rate from my node in 5 minute intervals and don't see anything out of the ordinary.

Lowest estimated was ~66 EH/s, but it appears as though we just had a few slow blocks (ex: 596213, 596250, 596267, etc) that snowballed the estimate downward.

https://twitter.com/austorms/status/1176501448135315456

I don't know what's the reason for the sudden flash crash but it seems the network is slowly going back to normalcy. If some miners just shutdown their hardware, it doesn't make sense at all and how many machines? 1 million? 2 million? At least the price is somewhat recovering as well, from $8500-$8700. I guess we really need to see what happen in the next couple of days and see the reasoning behind this sudden flash crash.

[GMoore87]

According to Blockgeeks, One possible explanation is that there has been a sudden exodus of miners from the network because of low miner profitability.
Another theory that has been floating around is that a group of powerful mining pools may have gone offline due to power outages.

[milewilda]

Bitcoin's network has gone from hero to zero this month as a prior rally for bitcoin's hashrate took a swift dive down 40%

https://www.ccn.com/bitcoin-hashrate-flashcrash-price-slump/

I do read up these articles too https://www.newsbtc.com/2019/09/24/bitcoin-hashrate-bombs-30-following-bakkt-launch-coincidence/
We cant say nor point out precisely if these things are coincidence or purely a manipulative or intentional one.
Hashrate crash for 40% on a short span of time will really give out presumptions or possible reason.
30-40% is a large chunk either this had been done by a single entity or multiple.

[beerlover]

Bitcoin's network has gone from hero to zero this month as a prior rally for bitcoin's hashrate took a swift dive down 40%

https://www.ccn.com/bitcoin-hashrate-flashcrash-price-slump/

It actually makes sense that price would go down the moment the difficulty drops, after all miners would make money easier on lower difficulty and the easier they make money the more they can sell accordingly.

However, I heard that there was a group of people who sold their miners to someone bigger, right now difficulty is lower because those sold miners are not in affect right now, probably closed the machines and packing them so that they can ship and then buyer will receive them and plug them to make it work as well which would end up as the difficulty going up again but this time one business making more money. If that is the case it is not really that good because we really wouldn't want a monopoly miner company, we already have enough of them and we don't need more manipulators.

I guess bitcoin foundation must work on something which will help anyone to contribute for bitcoin mining like staking or through another innovations so that centralized corporate may lose their power over the time. When more common people would participate, we can be sure about consistency in all manners.

[hugeblack]

Based on the charts above, we can say that Bitcoin Hashrate was affected by the price drop and was not one of the reasons. Perhaps one of the factors that led to the collapse to the level of $ 8600.
If we concentrate, the price has fallen with fixed stability of Hashrate and upon reaching the breaking point, the two have fallen in the form of free fall which is a normal behavior of some miners to avoid losses.

In Short: This news is not worth all this amplification. (FUD)

[paxmao]

If a large mining business were closing... would not these be the symptoms?  They sell all their bitcoin and stop production.

[leowonderful]

I came back to the Blockchain.com BTC network hashrate chart today, and it seems like things are going back up again after that little dip in network hashrate yesterday. Might've been something as simple as a facility being powered down or miners being moved to a new location or maybe even just an error on the side of these network hashrate estimators too in addition to what hugeblack said, but things seem to have stabilized again.

[dothebeats]

The sudden crash would have caused some miners who are configured to mine the best coin currently to switch whatever they’re mining to the most profitable one at that given time. I know some pools do this, and it’s not new in order to maximize the profit possible for the whole pool. It’s going back to normal now and what I’ve mentioned seemed to be the most probable event that happened as of late. It could have been other things bur so far, no new information has surfaced since then.

[Pipdips]

Question: Where do you monitor Bitcoins hashrate?  Is there a specific chart for that?

[rose9696]

Bitcoin hashtrate dropped and more news about the failure of Bakkt caused the market to go down sharply. The confidence of major investors about bitcoin is gradually lost and they are looking for a new destination.
This is just my thought. Do you guys have the same opinion as me? Will Bitcoin2 be the new home for sharks?

[Pipdips]

Bitcoin hashtrate dropped and more news about the failure of Bakkt caused the market to go down sharply. The confidence of major investors about bitcoin is gradually lost and they are looking for a new destination.

What, you mean that the world just up and decided to stop the progress of making digital currencies the new way of paying for Damn Near Everything in the future?  Mmkay, whatever dude... keep dreaming...

Will Bitcoin2 be the new home for sharks?

What is Bitcoin 2?

[BitHodler]

I guess bitcoin foundation must work on something which will help anyone to contribute for bitcoin mining like staking or through another innovations so that centralized corporate may lose their power over the time. When more common people would participate, we can be sure about consistency in all manners.

I don't think there is much to improve as long as the economical incentives 'force' miners to play the game as per the rules. Bitcoin's mining ecosystem hasn't ever been this healthy and distributed.

There has been a proposal where individual miners pointing their hashrate to a pool will be able to select transactions to be included in blocks themselves instead of the pool operators, which is how it works right now.

People have to accept that we're working with a decentralized protocol that won't ever be perfect. There will always be something you can point out that could be done better. Let it slide.

[1Referee]

If a large mining business were closing... would not these be the symptoms?  They sell all their bitcoin and stop production.

It's important to take into consideration that miners haven't sold much of their coins at all, and they aren't likely planning to do so based on the previous years of what they did with their coins. Bitcoin's transparent nature allows us to follow how many blocks each miner finds, and how many of these coins are actually being sent to an exchange. It's just a matter of following their mining addresses.

Hashrate-wise, miners haven't stopped mining at all. In fact, the difficulty is about to make a new all time high with a near 7% increase being due. The thing that has to be said though, if the price doesn't increase much in the forthcoming months, people shouldn't be too surprised seeing the difficult go back down a bit. It's all perfectly normal and part of Bitcoin's economical model.

[sana54210]

Bitcoin's network has gone from hero to zero this month as a prior rally for bitcoin's hashrate took a swift dive down 40%

https://www.ccn.com/bitcoin-hashrate-flashcrash-price-slump/

I want to think that this case is just a coincidence and the two things did not happen at the same time, though I cannot categorically say that there would not still be little effect of it, but I believe there is more to the crash of bitcoin that is off record and it could be that some very big investors decided to pull out of the market out of impatience, haven waiting for the bull run which is yet to come.

Secondly, there has been some other rumors which I have ignored, like the Korea trying to shut down crypto, and secondly a mining firm closing down, there are what many people have speculated, of which I would not say that it completely has an effect on the price of bitcoin. I have seen such big dip in the past which we have never been able to report of some of the cause, so this is not new to me as I am waiting for the price to recover.

[Thanasis]

Bitcoin's network has gone from hero to zero this month as a prior rally for bitcoin's hashrate took a swift dive down 40%

https://www.ccn.com/bitcoin-hashrate-flashcrash-price-slump/

It could be a reason for the price dump in the last week but it was triggered more by the normal traders who kept selling with the fear of losing price.Now the prices getting back into normal and I can see 6% growth in the last 24 hour can be perfect recovery pace so don't think that miners quitting mining the bitcoin,if they were doing it when price reached $3000 range they have no reason to stop doing at $10,000.

Possible reasons explained here : https://blockgeeks.com/why-did-the-bitcoin-hashrate-suddenly-plummet-down/

[Pipdips]

So how do you measure hash rates?  Has it improved since you posted this topic?

[pixie85]

So how do you measure hash rates?  Has it improved since you posted this topic?

First of all the article is making a big deal out of it which it was not! Hashrate went to -30% but look at where the 0 is. It first pumped to +40%  and then went down from it. It looked more like somebody was testing new hardware and then shut down.

In December 2018 it lost much more and nothing happened.

You can see actual hashrate on blockchain.info. It's back to normal.

[X-ray]

Bitcoin's network has gone from hero to zero this month as a prior rally for bitcoin's hashrate took a swift dive down 40%

https://www.ccn.com/bitcoin-hashrate-flashcrash-price-slump/

It could be a reason for the price dump in the last week but it was triggered more by the normal traders who kept selling with the fear of losing price.Now the prices getting back into normal and I can see 6% growth in the last 24 hour can be perfect recovery pace so don't think that miners quitting mining the bitcoin,if they were doing it when price reached $3000 range they have no reason to stop doing at $10,000.

Possible reasons explained here : https://blockgeeks.com/why-did-the-bitcoin-hashrate-suddenly-plummet-down/

At $3000 the difficulties is quite different to today if it's to be compared i don't think it's right. However I do agree with you that there's no reason for miners to stop just now and when the halving is near.
The article above you mentioned explain that it's possibly because of power outage that does make sense but If the only website that shown hashrate flashcrash is blockchain.info and there's none other than that I'm more sure that it's merely a possible error from the blockchain.info's side which is invalidated by that post above.