The COVID-19 pandemic has caused the closure of large foreign mining farms, and Bitcoin computing power has dropped by nearly 50%.

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

Image source: pixabay

After plunging to just under $4,000, Bitcoin prices have recovered somewhat and are now trading around $6,700. While the price has dropped by about 30%, or even less than 30% from $8,000, Bitcoin’s hashrate has dropped by about 50%.

This suggests that the decline in hashrate could be partly due to large miners in Europe and the United States temporarily shutting down their mining farms under government orders as much of the Western world implements quarantine measures.

It is a bit surprising that Ethereum’s hashrate has not been affected at all despite its price crash, perhaps more because GPU miners distribute their hashrate proportionally to different coins. Therefore, if the hashrate of all GPU cryptocurrencies fell by the same percentage compared to prices, then the mining profit margins would remain the same, so miners would not move.

However, Ethereum miners have not turned off their GPU rigs, suggesting that mining is still profitable at current prices, although miners may be mining to break even in anticipation of higher prices.

Ethereum hashrate chart in March 2020

The expectation of rising prices may be due to the consideration that the recent price fluctuations were caused by temporary events, which are now expected to be under control as the government is widely consulting and taking proactive measures.

So, markets could see a V-shaped rebound as the Western world cheers Trump’s attempt to unite all levels of government and bring this situation to a quick end.

Dow rebounds with a vengeance in March 2020

The United States has implemented a $2 trillion economic stimulus plan, and each American household can get a $3,000 rescue check from the government. As a result, the US debt level will soar, and some countries may even go bankrupt because the unemployment rate will rise as the economy slumps.

However, the Dow Jones Index rose more than 6% in a single day as market expectations gradually improved and the US economy and many other aspects could rebound quickly within a few weeks. Some preliminary results on the treatment are expected to be announced today or tomorrow.

Trump and others may look more hawkish based on the data coming out of New York, so if they start administering treatments on Tuesday, some cases should get better today and tomorrow.

On the European side, the government will not report the data until six weeks after the trial ends, but hopefully Trump will get the data from New York within a few days because if it's more than a few weeks, the data will be useless because people need treatment now, not after all this is over.

Author: Trustnodes < br/> Compiler: Libert