Despite Heat Wave, Bitcoin Miners Turn on Rigs As BTC Price Jumps

The recent price surge by Bitcoin over the last two weeks has forced BTC miners to turn on their rigs despite the ongoing heat wave in the west.

Amid the Bitcoin price crossing $23,000, the BTC mining difficulty rate has jumped more than 1.7% in the last two weeks. During the previous bi-weekly adjustment, the Bitcoin mining rate dropped to its lowest a year ago.

Amid the current heat wave, electricity costs have gone up significantly which is also the biggest expense for Bitcoin miners. With soaring electricity prices due to heat waves, Bitcoin miners shuttered operations.

Over the last two weeks, the BTC price has surged by 6.2%. This price jump has boosted mining revenue and forced miners to turn on their rigs. Speaking to Bloomberg, Jaran Mellerud, crypto-mining analyst at research firm Arcane Crypto said:

“The Bitcoin price increase has led to increased profitability for miners and some miners who were pushed offline in June and July have likely plugged in their machines again”.

Bitcoin Miners Concentrating in Texas and Georgia

Once again, Bitcoin miners have been flocking to the southern U.S. states of Georgia and Texas which have crypto-friendly regulations and low price electricity supply. Last month in early July, miners had to shut down all industrial-scale operations after a strong heat wave hit Texas.

Some of the large-scale miners in Texas have participated in demand response programs by the state operator – Electric Reliability Council. This program involves a voluntary curtailing of energy consumption during peak hours, however, miners get compensated later.

By shutting down its Bitcoin mining rigs in Texas last month, Riot Blockchain has accumulated $9.5 million in credits last month. Jaran Mellerud said:

“In July, many American miners unplugged their machines as part of their participation in demand response programs. This led to a considerable drop in Bitcoin’s computing power in that month”.

The post Despite Heat Wave, Bitcoin Miners Turn on Rigs As BTC Price Jumps appeared first on CoinGape.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Breaking: Bitcoin (BTC) Price Risks Falling Below $21,000, Here’s Why

The Bitcoin (BTC) price can fall below $21,000 as the bear hug tightens. The price recently touched a high of $25,135 and retraced to a low of $23,243. The downward price trend has formed a regular bearish divergence with a short-term target of falling to $21,000-$20,000. The Crypto Market Fear and Greed Index has tumbled

BTC, ETH, DOGE: Why Major Cryptos Are Trading In Red Today?

Today’s slump in the price of crypto giants including Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) has left investors disappointed. At the press time, BTC was trading at $23,379.13, down by 4.05% over the last 24 hours. Meanwhile, the price of ETH and DOGE was spotted trading at $1,845.20 and $0.082021, a decline of 5.11%

Ether (ETH) Falls for Fourth Consecutive Day, Is Merge Mania Ending?

After a strong rally in the last 45 days since the beginning of July 2022, the crypto market has once again come under selling pressure. The broader crypto market has been retreating for the fourth consecutive day in a row, including the top two giants Bitcoin and Ethereum. As of press time, Ether (ETH) is

Fidelity Chief Explains Why Bitcoin (BTC) Is Cheap At Current Level

Over the last 45 days since July 2022 beginning, Bitcoin and the broader cryptocurrency market have given a strong run-up. As of now, Bitcoin is currently facing resistance at $24,000. Jurrien Timmer, Director of Global Macro at Fidelity believes that Bitcoin is currently “cheap” as per the BTC adoption curve thesis. Timmer explains that Bitcoin’s