Following these developments, “hashrate”, an important indicator measuring the profitability of Bitcoin mining, fell to its lowest level of all time. This situation is similar to the troubles experienced in the summer of 2021 due to China’s ban on Bitcoin mining and fuels concerns about the future of the cryptocurrency.

Crypto mining analytics firm Hashrate Index found that the hash price dropped to $44.31 per petahash per day last week. This number was recorded as the lowest hashprice value in the history of the cryptocurrency market.

Even during the period of China’s pressure in May 2021, the hash price dropped from 379 PH/day to 203 PH/day, but this decline remains behind the current record level. Another troubling element in the Bitcoin network is the significant decrease in transaction fees. Trading volumes have reached their lowest point since Q3 2023.

Let’s take a closer look at transaction fees to understand the seriousness of the problem more clearly. According to Luxor Technology head of research Colin Harper, the Bitcoin blockchain network processed only 12.32 BTC worth of transaction fees on July 8.

This figure stands out as the lowest amount of transaction fees recorded in almost nine months. Harper recently reminded that during Bitcoin’s 28.5% price increase in October 2023, transaction fees dropped to 11.4 BTC. This comparison reveals how critical the current situation is.

Hashrate Index analysts predict that the USA experiencing its hottest days in the coming period may negatively affect Bitcoin’s hashrate. Heat waves can further deepen the hashrate’s stagnation by making it harder to cool mining equipment. The potential effects of this situation on the security of the Bitcoin network should also be closely monitored.

The fact that the Bitcoin mining difficulty has been reduced three times in a row brings to mind the Chinese sanctions in the summer of 2021. At that time, difficulty adjustments were similarly reduced, and this caused significant turbulence in the cryptocurrency market. This year, Bitcoin’s hashrate had a difficult summer after the fourth halving. Halving is the event when Bitcoin production is halved, which causes a 10% decrease in the network’s hashrate.

The Bitcoin market has been facing challenges on multiple fronts lately. The decline in prices, Germany’s sales and decline in transaction fees, lowering of mining difficulty and potential heat waves stand out as factors that threaten the stability of the Bitcoin network. These developments are important events that need to be followed closely for the future of cryptocurrency. It remains unclear what course the cryptocurrency market will follow in the coming days.

Experts offer different opinions on how the market will overcome this difficult period and whether Bitcoin will rise again. Some analysts argue that Bitcoin is a proven asset and can overcome these challenges. Others emphasize that the cryptocurrency market is in the process of maturation and such ups and downs are normal.