Bitcoin mining devices stop working in America: sharp drop in mining rate (Hashrate) by nearly 40% within two days due to a snowstorm hitting the United States, forcing miners to turn off their devices to save electricity or due to rising energy costs amid fears of having to sell their Bitcoin holdings to cover expenses.

This time the story is not "surrender" from the miners because the price is down. The story is "a force majeure" from nature, a terrifying snowstorm in America that froze the devices and left the power grids on a hair's edge.

Why does this news scare the market? Let's understand it together.

America is the "big mine": one-third (1/3) of Bitcoin mining in the world is located in America. When these devices go offline, the "network security" temporarily weakens, and this gives a negative impression to investors.

The danger of forced selling: miners have fixed expenses (salaries, rents, debts). If their devices remain off and they are not producing new Bitcoin, they will have to open their "piggy banks" and sell from the Bitcoin they have stored to pay their bills. This creates a sudden "selling pressure" on the price.

Bad timing: the storm is coming, and Bitcoin is already struggling at the 90,000 level. Any new influx from miners could easily break the price down.

What you need to understand, my sad trading friend 🥸

"The snow froze the mining devices." Miners in America are now caught between two fires: the cold and expensive electricity, and the expenses that won't wait. If this storm lasts, we will see a "dump of Bitcoin" in the market from the miners to cover their losses, which will create a rapid "shift" in the price. Monitor the "hash rate"; if it starts to rise again, it means the storm has receded and the miners have returned to work. If it continues to drop, it means a "strong sell" is coming from the mining crowd. Stay alert!