Bitcoin mining hashrate is down by 25%. This comes in the wake of Texas curtailing the usage of businesses. The Texas grid regulator has requested a more conservative approach in response to ERCOT’s message.
ERCOT, short for Electric Reliability Council of Texas, recently issued a warning that the operating reserves could be on the lower side. That is because of high demand and continued freezing temperatures. Also, ERCOT has said that there could be unseasonably low wind.
The request also extends to common residents, provided it is safe to do so. Reports surfacing after the warning by the Council highlight that the reduction is for more than 4 gigawatts of power capacity. Global hashrate is now down from 600 EH/s to 450 EH/s.
Users of Luxor Mining Pool have also been affected by the cold snap, forcing their partners to bring down their usual consumption. The objective is to support the Texas grid at a time when it needs their support. Bitcoin mining, as a market, has previously expressed its commitment to free up consumption at any time during the need of the hour. This helps others to drive their usage momentarily.
Texas was termed a hub for Bitcoin mining after the Chinese government cracked down on its own players. This dates back to 2021, and Texas has not looked back since then. It emerged as an alternative hub for firms including, but not limited to, Marathon Digital, Iris Energy, and Riot Platforms.
This is not the first time miners have encountered ERCOT’s call for curtailment. Riot Platforms, one of the best bitcoin mining platforms, had previously received requests in August following a $31.7 million credit. Iris Energy received the request the same month that it recorded $2.3 million in energy credits.
The prevailing market prices for Bitcoin tokens remain unaffected by this development. The token’s value has decreased by 0.75% in the last twenty-four hours, to $42,431.38. Additionally, it signifies a decline of 9.54% over the past week. These values were true at the time of writing this post. After the SEC approved Bitcoin ETF applications, the trading value deviated significantly from what the community had anticipated.
Making things worse is the fact that its market cap and 24-hour volume are both down by 0.66% and 15.89%, respectively. BTC did briefly surpass the milestone of $47k but has since failed to find comfort at $43k.
BTC holders are optimistic about the token, hoping that Bitcoin Halving will set the record straight and help the token meet its ATH by the end of this year.
ETH is doing better. The token is above the $2,500 mark, being traded at $2,520.25. ERCOT and Bitcoin miners are working in collaboration to conserve energy, with firms standing true to their words about coming to the rescue during the need of the hour.