Anthony Pompliano

There is the markets are forward-looking.

There's all these components that line up with why Bitcoin's price is going down.

Now, on top of that, I have seen people online talk about mining hash rate falling.

There's always been this question as to is mining hash rate the leading indicator for price or is price leading indicator for mining hash rate?

Put aside that debate for a second.

I'll let people smarter than me try to answer it.

But what I do believe is that people need to dig into the data sometimes.

And yes, there has been a significant decline in mining hash rate over the last two weeks.

But a big reason why is because

As the miners have become more sophisticated, specifically in North America, they have started to actually do demand response or try to stabilize grids.

So when it gets really cold outside, the grid has lots more people pulling energy from it.

They're turning on their heat.

They're using electricity more.

And so the miners have a decision.

I can keep mining Bitcoin or I can shut off my Bitcoin miners and I can provide power back into the grid and get paid for it.

is a simple economic calculation.

If I'm going to get paid more by selling the power back into the grid rather than mining Bitcoin, I'm going to shut my machines off.

I'm going to put it back into the grid.

And so when we had this really big kind of Arctic storm that went across the United States, it affected huge areas of Bitcoin miners.

And we saw a lot of miners start to report the fact that they were shutting off their machines and that they were going and putting the power back into the grid.