New crown epidemic causes large foreign mines to close, bitcoin computing power drops by nearly 50%

According to Trustnodes reported on March 27, Bitcoin's computing power has continued to decline, and has now dropped from about 140EH / S at the beginning of the month to around 75EH / S.

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Image source: Pixabay

Bitcoin price has rebounded after plunging to just under $ 4,000, and has now rebounded to about $ 6,700. Although the price has dropped by about 30%, and even less than 30% if calculated from $ 8,000, Bitcoin's hashrate has dropped by about 50%.

This suggests that the decline in computing power may be partly due to large mines in Europe and the United States temporarily closing their mines under government orders, as most western countries are implementing isolation measures.

Although the price of Ethereum has plummeted, its computing power has not been affected at all, which is a bit surprising, perhaps more because GPU miners have distributed their computing power to different coins proportionally. Therefore, if the computing power and price of all GPU cryptocurrencies have fallen by the same percentage, the mining profit margin will remain the same, so the miners will not transfer.

However, Ethereum miners have not shut down GPU miners, which indicates that mining is still profitable at current prices, although miners may conduct capital-protected mining in the event of expected price increases.

Ethereum hashing power map

Ethereum hashrate in March 2020

The reason for the expected price increase may be that people think that the recent price fluctuations were caused by temporary events, and now this temporary event is expected to be controlled because the government is soliciting opinions and taking proactive measures.

As a result, when the Western world cheers Trump's attempts to unite governments and quickly end the situation, the market may see a V-shaped rebound.

Dow rebounds

The Dow retaliates in March 2020

The United States has implemented a $ 2 trillion stimulus package, and every American family can get a $ 3,000 rescue check from the government. As a result, US debt levels will soar, and some countries may even go bankrupt because unemployment will rise as the economy weakens.

However, as the market is expected to gradually improve, the US economy and many other aspects may rebound rapidly within a few weeks, with the Dow Jones Index rising by more than 6% in a single day. Some preliminary results regarding the treatment are expected to be announced today or tomorrow.

According to data from New York, Trump and others may look more hawkish, so if they start treatment on Tuesday, some cases should be better today and tomorrow.

In Europe, the government will not report the data until six weeks after the trial, but hopes that Trump will get the data from New York within a few days, because if it is more than a few weeks, the data will be useless because people need treatment now, and Action is not taken after all this is over.