Bitcoin’s total estimated annual electricity consumption has plummeted nearly 60%, falling from the all-time peak above 143 terawatt-hours (TWh) in May to as low as 62 TWh in early July, according to data from Cambridge Bitcoin Electricity Consumption Index (CBECI). This is the lowest energy consumption rate recorded since early November 2020.
At the time of writing, Bitcoin’s annualized electricity consumption is estimated at 67 TWh, while the upper bound consumption, or the absolute maximum total electricity expenditure based on the worst case assumption, stands at 162 TWh, down from 520 TWh in mid-May.
The lower bound estimate, which corresponds to the absolute minimum total electricity expenditure based on the best case assumption that all miners always use the most energy-efficient equipment available on the market, has also dropped from 47 TWh to 24 TWh.
Despite global regulators continuing to blame Bitcoin (BTC) for excessive energy consumption and associated environmental catastrophe, Bitcoin’s energy consumption has in fact massively dropped recently, according to some data.
Bitcoin electricity consumption since January 2017. Source: CBECI
Related: Bitcoin Mining Council survey estimates a 56% sustainable power mix in Q2
As previously reported, Bitcoin’s parabolic bull action leading its price above $64,000 in April had driven a massive growth in the amount of electricity consumed by Bitcoin miners, spurring major debates over possible environmental impact of the cryptocurrency. Bitcoin later experienced a major sell-off after Tesla CEO Elon Musk suspended Bitcoin payments for Tesla vehicle purchases on May 12.
In line with Bitcoin prices, Bitcoin’s estimated electricity consumption has been rapidly falling since the announcement, prompted further by China’s crackdown on the cryptocurrency mining industry. After closing down crypto mining facilities in Inner Mongolia this April, Chinese authorities enforced a series of crypto mining bans in major crypto mining hubs including hydropower-based provinces like Sichuan and Yunnan, as well as Xinjiang and Qinghai.