Kevin Zhang of mining-focused Digital Currency Group subsidiary Foundry also estimated a 20 EH/s drop, noting the seven-day average for Bitcoin’s hashrate was 132.9 EH/s while daily hash rate concurrently tagged 112.9 EH/s. Blockchain.com estimates Bitcoin’s hash rate to have fallen from 151.1 EH/s on Oct. 24 to 116.3 EH/s the following day.
The province of Sichuan is one of the world’s largest hubs for mining activity. Miners flock there to take advantage of cheap hydro-electricity during the rainy season and then just as quickly leave. In 2018, it was estimated that 80% of Chinese miners migrate to Sichuan for rainy season from other parts of the country. CoinShares data published during December 2019 estimated Sichuan represents 54% of global mining activity. Heller also shared data estimating the next Bitcoin mining difficulty adjustment at the end of this week will see a reduction of between 7.4% and 8.8%. If accurate, the event would comprise 2020’s second-largest negative adjustment after the near 16% drop that followed the ‘Black Thursday’ crash in March.