The interval between blocks grew to 32.6 minutes, 226% greater than the 10 minutes that characterize Bitcoin’s block mining rate. The network’s hash rate fell from 180 EH/s to an all-time low of 65 EH/s when the block mining time reached 1,958 seconds.
The Bitcoin price volatility has declined significantly in recent weeks, reaching the metrics of mining, according to the latest Glassnode report. Due to the restriction of the Government of China, the hash rate of the network had a record drop.
Despite the great exodus of Chinese miners, the resilience of the Bitcoin protocol is remarkable, Glassnode argues. Between June 28th and July 4th, there continued to be block mining and transaction processing. That happened while 50% of the industry moved their facilities and reallocated capital to other jurisdictions.
Existing Average Interval Between Mined Blocks
Block mining occurs more slowly when a significant proportion of the hash rate decreases before a difficulty adjustment. The report notes that the interval between blocks grew to 1,958 seconds (32.6 minutes) during that week. It is 226% greater than the 10 minutes (600 seconds) that characterize Bitcoin’s block mining rate.
That is the longest block mining time in the history of Bitcoin, excluding the cypherpunk era. During that first year of the life of the pioneering cryptocurrency, it did not even have a price.
Another record interval, 1,774 seconds, occurred during the last boom of 2017, before the all-time high near USD 20,000.
How the Hash Rate Evolved in 2021
During the period between April and May, the hash rate on the network averaged 180 EH/s. It fell from those levels to a record low of 65 EH/s when the average block mining time peaked at 1,958 seconds.
Since June 28th, the hash rate has recovered and stabilized around the 88-110 EH/s range. That reflects a decrease from 38% to 49%, indicating the proportion of the offline network due to the ban in China.
The Difficulty Ribbon Has Inverted
The fastest Bitcoin difficulty moving averages typically appear above long-term moving averages. In 2009, Willy Woo introduced the so-called difficulty ribbon.
If short-term averages fall below long-term ones, the difficulty ribbon inverts. That is a rare scenario associated with the capitulation of miners and large holders.
The report states that reducing the protocol’s difficulty allows seeing that the difficulty ribbon has inverted completely. That usually represents a capitulation of miners, usually seen at the end of bearish markets.
A Boom in the Income of Bitcoin Miners
The change in the order of difficulty curves usually precedes bullish phases. However, the current logistical expenses of miners could have forced them to sell part of the Bitcoin accumulated. The authors of the report note there was in return an increase in income for 50% of the operating miners.
When the price of Bitcoin was between USD 50,000 and USD 60,000, miners received income between USD 50 million and USD 60 million daily. Bitcoin prices have declined by around 50% for operating miners; however, between 38% and 49% of their competition disconnected in the short term.
Despite the sharp decline in the hash rate, the resilience of the Bitcoin network began to stabilize. Besides, intervals have again fluctuated around the expected value of 10 minutes. Even amid the record migration of miners, their revenues are close to the figures of April in full bullish peak.
By Alexander Salazar