By Marcus Soterio, analyst A publicly listed digital asset broker GlobalBlock (TSXV: Block).
Bitcoin will remain above $19,000 as it may form a floor around $17,600 to $19,000 before a higher support rally. Despite negative macroeconomic news, selling pressure continues to prevail.
The report released yesterday by the Bitcoin Mining Council (BMC) raised some eyebrows, however, it showed that Bitcoin has seen a 41% increase in power consumption year-on-year (YoY). This has raised concerns that regulators may regulate crypto mining.
However, mining efficiency increased by 23%, and the sustainable energy mix was 59.4%, above 50% for the 6th quarter in a row.
Despite dramatic improvements in energy efficiency and a more diverse and sustainable energy mix, increasing energy consumption may attract the attention of regulators.
Bitcoin hashrate increased 8.34% in Q3 2022 and 73% YoY, although Bitcoin has been in a downtrend.
Glassnode, a leading data analytics firm, says that “the increase in hashrate is due to more efficient mining hardware coming online and/or miners with advanced ledgers gaining a larger share of the hash power network.”
After rejecting a proposal to ban crypto mining in March, the European Union yesterday released a document outlining an action plan to implement the European Green Deal and the REPowerEU plan – these plans are designed to closely monitor crypto mining activity and their environmental impacts. .
The US is moving more slowly than the EU in deregulation. In September, the White House Science Office published a 46-page document examining the climate and energy impacts of crypto-assets. The exact plan has not yet been laid out, but this new mining report may soon lead to action from the EU and US regulators.