Bitcoin News Today: Bitcoin's 51% Threshold Sparks Fear of Centralized Control and Systemic Risk

Bitcoin Mining Streak Raises Concerns Over Network Control

Bitcoin’s network security has come under scrutiny as two mining pools, Foundry USA and AntPool, now control over 51% of the cryptocurrency’s hash power. This concentration of computing power has triggered fears of a potential 51% attack, a scenario where a single entity or group with more than half the network’s hash power could manipulate transactions or reorganize the blockchain [1]. The issue has intensified just as Bitcoin (BTC) faces a sharp price decline and broader macroeconomic pressures.

The dominance of these two pools has raised red flags within the crypto community. Foundry USA, in particular, recently mined eight consecutive blocks, an event deemed highly unusual and indicative of growing centralization risks. Analysts warn that such centralization could theoretically allow the pools to censor transactions or undermine trust in the network [1]. While launching a 51% attack would be prohibitively expensive—estimates suggest a cost of around $1.1 trillion—it remains a concern given the potential for manipulation when power is overly concentrated [1].

The network’s vulnerability is compounded by the rise in empty blocks, which contain no transactions and generate minimal fees. These blocks suggest that miners are prioritizing speed over profitability, leading to reduced transaction efficiency and declining revenues [1]. Analysts have raised concerns about the long-term sustainability of Bitcoin’s network under such conditions, particularly as users increasingly demand efficient and cost-effective blockchain services.

Bitcoin’s price has been sliding toward a critical support level near $110,530, a threshold that traders are closely watching. If the price holds above this level, some analysts believe a rebound toward $120,000 is possible. However, a breakdown below $110,530 could signal further declines toward $107,000 or even $100,000 [1]. Short-term technical indicators, including the relative strength index and 20-day moving average, currently show bearish momentum, adding to market uncertainty.

Beyond the technical dynamics, macroeconomic factors are also influencing sentiment. A shift in Federal Reserve policy and concerns over the newly passed Genius Act stablecoin bill have added pressure to crypto markets. Fears of a potential $6.6 trillion withdrawal from the stablecoin sector have raised systemic risks, creating a challenging environment for Bitcoin and other cryptocurrencies [1].

While proponents argue that no rational actor would spend billions to destroy the network that sustains their investment, the perception of vulnerability is already affecting market confidence. The situation underscores the broader debate about the balance between decentralization and efficiency in blockchain ecosystems. As Bitcoin’s hash power continues to concentrate among a few dominant players, the community will likely monitor any further shifts in network dynamics closely.

Source:

[1] Bitcoin at risk of a 51% attack from two miners (https://www.bitcoininsider.org/article/283548/bitcoin-risk-51-attack-two-miners)

[2] Bitcoin at risk of a 51% attack from two miners (https://coinjournal.net/news/bitcoin-at-risk-of-a-51-attack-from-two-miners/)