Chart of the Day
A New Low. Inflation rates for the world’s bellwether cryptocurrency in the months leading up to the May 2020 halving event and after that remained consistent in the 3.6% – 4.0% and 1.8% – 2.0% ranges respectively. That is, until literal May-hem descended upon the crypto market — inflation rates almost touched the 1.0% mark before heading back upwards into range, but that did not last long. On June 27, 2021, rates fell to a historic low of 0.71%, the cause of which has been attributed to China’s recent crackdown on its domestic mining industry.
Talk of the Town
Miners Out, Hash Power Off. The battle with government regulations is an uphill one, especially for spurned miners in China who, prior to the recent crackdown, were responsible for approximately 65% of the hash rate on Bitcoin’s network. The result? A 28% drop in Bitcoin’s mining difficulty over the weekend — another historic dip for Bitcoin — as miners migrate to international farms. It’s a tough transition for miners in China, but other mining heavyweights are feeling the breeze and reaping rewards in the meantime.