The Bitcoin network’s hash rate plummeted in recent days after a severe winter storm in the US disrupted power supplies, forcing massive reductions in mining activity and driving the hash rate to a seven-month low.
Over the past few days, Bitcoin’s hash rate plummeted to a seven-month low due to a storm in the United States that brought the mining sector to a standstill. Some estimates indicate a drop of more than 40% during the two-day period.
The hash rate fell from over 1 ZH/s to approximately 663 EH/s at its lowest point, before recovering to around 854 EH/s on January 27. Despite the magnitude of the impact, the network continued producing blocks and recovered as conditions improved, although the overall impact of this loss is still unknown.
Despite the drop, as the storm passed, the service returned to normal operation, and block times, which had been nearly halted for some periods, returned to similar levels.
The collapse of the hash rate and what it means for the Bitcoin market
US-based miners reduced activity as widespread outages and grid strain spread to affected regions. Several operators voluntarily reduced energy consumption to protect both their assets and local power grids.
Oregon-based Abundant Mines released a statement estimating that up to 40% of Bitcoin mining capacity was affected and offline. This incident further raises questions about the capacity of certain regions, vulnerable to climate change, and the way Bitcoin farms operate.
The company described the industry’s ability to quickly pause and restart as evidence that mining can function as a “flexible load,” a capability that helped alleviate immediate pressure on networks while minimizing long-term damage to hardware.
The operational decision to reduce production under stress reduced miners’ short-term revenue but limited their exposure to more prolonged outages and the risk to their hardware. This means that the miners minimized the negative impact on the price of the currency, and demonstrated that flexible loading is the best way to mine today.
