As of early July, electricity consumption by Bitcoin miners fell by almost 60% to 62 TWh from a record peak of 143 TWh in mid-May.
According to the Cambridge Bitcoin Electricity Consumption Index (CBECI), total estimated annual electricity consumption by miners fell by almost 60%, dropping from a historic peak of 143 TWh in May to 62 TWh in early July. This is the lowest level since the beginning of November 2020.
Currently, the annual electricity consumption of Bitcoin miners is estimated at 67 TW / h. At the same time, the estimated maximum total power consumption is 162 TW / h, compared to 520 TW / h in mid-May. The proposed minimum has also dropped from 47 TWh to 24 TWh.
Electricity consumption by BTC miners since January 2017. Source: CBECI.
The energy consumption of Bitcoin miners began to decline as the bearish BTC market developed. The tightening of the regulatory policy towards cryptocurrencies by the Chinese government also played a significant role.
In June, the Central Bank of China banned banks from serving customers related to digital assets. In addition, in connection with the implementation of the state program to reduce carbon emissions into the atmosphere, a ban on mining was introduced in all Chinese provinces.
The tightening of regulatory policy on miners and the massive closure of mining enterprises in China have also led to a sell-off in the secondary market for video cards used to mine cryptocurrencies.