The crypto market continued to fluctuate this week. As a result, the global cryptocurrency market cap has seen a mere 1.71% increase in the last day, reaching $1.07 trillion at the time of writing. Bitcoin followed with a 0.82% gain over the last 24 hours at press time.
On the price front, there is undoubtedly an improvement when we compare the state of the crypto market with that of the last month. Interestingly, from the network side too, the situation is improving.
Bitcoin mining recovery
By May and June, miners were at their best, having recovered from the May 2021 crash. The hash rate reached an all-time high in June. But with the June crash, the hash rate took a hit, dropping to 202 Eh/s.
Bitcoin hash rate | Source: Glassnode – AMBCrypto
Consequently, the mining difficulty also started to decrease and reached a four-month low.
The reason behind this was the disappearance of miners who had to shut down their machines due to rising operating costs and declining profits. This, because of the reduction in prices.
Bitcoin mining difficulty | Source: Glassnode – AMBCrypto
Although, after a month that hit a three-and-a-half-year low, the Puell multiple has recovered from the extreme stress zone, it still shows that the miners are under pressure.
Bitcoin Puell Multiple | Source: CheckOnChain
But things are looking up for these miners now. Globally, the situation is improving as countries and companies see growth.
Just recently, Iran’s Ministry of Energy changed its cryptocurrency mining regulations to facilitate access to renewable energy sources for authorized entities to mine digital currencies in the Islamic Republic.
This will allow miners to buy electricity generated through renewable sources from anywhere within the country at a much cheaper price. Until now, this facility was limited to the province itself where the mining facility was located.
In addition, Bitcoin mining company BitFarms also announced the completion of the second phase of its developing “The Bunker” mining facility.
This increased its hash rate as the company added 9,450 new miners. Thus bringing the total hashrate to 3.8 Eh/s. The third phase will add another 3,250 miners.
These developments will allow the mining industry to expand rapidly. Thus, replacing the miners who left. And, in return, recovering the lost hash rate.
