Iran Blackouts Not Main Driver Behind Bitcoin Price Surge

The recent surge in Bitcoin prices from below $63,000 to over $72,000 has sparked various theories about its cause. One such theory claims that Iran's blackouts reduced cheap mining, thereby easing selling pressure on the cryptocurrency. However, experts argue that this explanation is flawed and does not hold up to scrutiny.

The share of Iran's contribution to the global Bitcoin hashrate is extremely low, at a single digit percentage. This means that any disruption caused by local blackouts would have limited impact on the overall network activity. In fact, there has been no significant drop in hashrate or on-chain sell-offs detected.

Experts point to other factors as the primary drivers behind the recent price increase. One such factor is the influx of new capital from Exchange-Traded Funds (ETFs), which have become increasingly popular among institutional investors. Additionally, short liquidations and a broader market recovery also played a significant role in driving up prices.