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Ethiopia Cuts Bitcoin Miners' Power 75% Amid Dry Spell
Ethiopia has cut electricity supplied to Bitcoin miners by about 75%, as lower reservoir inflows strain the country's hydroelectric system and force the state utility to prioritize households and industry.
Published:
Updated:
What happened
Ethiopia has cut electricity supplied to Bitcoin miners by about 75%, as lower reservoir inflows strain the country's hydroelectric system and force the state utility to prioritize households and industry.
Confirmed
Global impact / market context
This cut means Bitcoin miners in Ethiopia get far less power, which can reduce the Bitcoin they produce and raise their costs per coin. It also shows how a dry spell can push a country to favor homes and businesses over mining.
Analyst inference
Bitcoin mining competes globally for cheap electricity, so a power cut in one country can shift mining activity elsewhere. Investors may watch whether this reduces total Bitcoin supply growth or pushes miners toward other energy sources.
Analyst inference
What to watch
- Ethiopia's state utility is prioritizing households and industry over Bitcoin miners, so further power reductions for miners are possible if reservoir inflows stay low. Confirmed
- Officials could set a formal rule or schedule for how much electricity Bitcoin miners may use during dry spells, which would make future cuts more predictable. Proposed
- If miners leave Ethiopia, other countries with cheap power may see more mining, changing where Bitcoin is produced and how much miners earn per coin. Analyst inference
Affected assets
- BTC — Bitcoin