Cryptocurrency

Poolin Bitcoin mining hash rate share falls by 94% from ATH

Hull Invest

Poolin, a China-based bitcoin mining pool, posted a record drop in hash rate share from an all-time high of 18% to 1%, according to Glassnode data. This is a drop of 94%.

Source: Glassnode

Contributed by Purine 4354 blocks Extending the timeline to 1 year, in a Bitcoin mining pool with a hash rate share of 8.182%. However, in 2022, Bitcoin mining has been hit hard by miners going out of business due to rising mining difficulty, falling Bitcoin prices, and declining profitability.

The recent recession can be traced back to September last year when a mining pool company announced liquidity problems. This pool accounted for about 12% of Bitcoin’s hashrate before the announcement.

Poolin has further suspended all withdrawals, flash trades and internal transfers from the network to protect assets and stabilize liquidity. As a result, many miners left the pool, reducing hash power and block rewards.

Among them, Poolin recorded the largest miner exodus in two years, reaching 10,000 BTC. Additionally, CryptoSlate’s previous analysis showed that Bitcoin held in Poolin wallets plummeted from 22,000 BTC in early November to 6,000 BTC in December. This accounts for a significant portion of the overall market decline in miner-held balances.

It is worth noting that mining Bitcoin in China has become more difficult after the Chinese government banned cryptocurrency mining in 2021. partnership and Three Arrows Capital, a cryptocurrency hedge fund that declared bankruptcy after the collapse of Terra Luna last year.

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