The crypto market continued fluctuating this week. Consequently, the global crypto market capital noted just a 1.71% increase over the last day to reach $1.07 trillion, at the time of writing. Bitcoin followed suit with a 0.82% gain in the last 24-hour of press time.
On the price front, there is undoubtedly an improvement when we compare the status of the crypto market to that of the last month. Interestingly, on the network side too, the situation is improving.
Bitcoin mining recovery
Up until May and June, the miners were at their best, having recovered from the May 2021 crash. The hash rate hit its all-time high in June. But with the June crash, the hash rate took a hit by falling to 202 Eh/s.
Bitcoin hash rate | Source: Glassnode – AMBCrypto
Consequently, the mining difficulty also began declining and reached its four-month lowest.
The reason behind this was the disappearance of miners who had to shut their machines down due to the rising cost of operations and declining profits. This, because of the price drawdown.
Bitcoin mining difficulty | Source: Glassnode – AMBCrypto
Although, after a month of hitting a three-and-a-half-year low, the Puell multiple has recovered from the extreme stress zone, it is still indicating that the miners are under stress.
Bitcoin Puell Multiple | Source: CheckOnChain
But things are looking up for these miners now. Globally, the situation is improving as countries and companies are observing growth.
Just recently, Iran’s Ministry of Energy changed its crypto mining regulations to ease the access to renewable power for authorized entities to mint digital currencies in the Islamic Republic.
This will allow the miners to purchase electricity produced via renewable sources from anywhere within the country at a far cheaper rate. Up until now, this facility was limited to the very province the mining facility was situated in.
Furthermore, Bitcoin mining company BitFarms also announced the completion of the second phase of “The Bunker” mining facility it has been developing.
This furthered 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 would enable the mining industry to expand rapidly. Thereby, making up for the miners that exited. And, in return, recovering the lost hash rate.
