Bitcoin hashrate bounces back after China crypto clampdown

When China cracked down against the crypto industry earlier this year, one metric that suffered as a result of the clampdown was the Bitcoin mining hashrate, which fell by more than 50% during that time because of crypto miners being pushed out of the country.

Bitcoin mining hashrate has resumed its journey to the top, with data showing that the metric has risen by about 80% in the last five months, thanks to former Chinese miners discovering new locations throughout the world.

BTC mining hashrate recovers

Bitcoin hashrate dropped as low as 85 exahashes per second (EH/s) during the peak of China’s crypto prohibition, per the Coin Metrics data. 

After reaching a high of 167.18 EH/s on November 17, Bitcoin’s hashrate has now nearly fully recovered, and the flagship digital asset’s hashrate is now at 156.6 EH/s.

According to a Kraken intelligence analysis, the network hashrate may reach a new all-time high sooner than expected as a result of the computational power employed by miners.

“While many expected the hash rate to achieve an all-time high at the end of December, the network is now on track to beat forecasts thanks to a continuing rise in mining demand,” Kraken said.

BTC mining difficulty up as miners earn more

Apart from the fall in BTC mining hashrate, the mining difficulty of crypto gold was also affected by China’s crypto crisis.

Before the ban, the mining difficulty of Bitcoin was as high as 25.05 trillion in May, but it decreased to a low of 13.67 trillion in July, when the limit was fully implemented.

However, as miners move to new areas in Russia, North America and Kazakhstan, the difficulty of mining BTC has climbed by 66% to over 22 trillion as of press time.

 

Image courtesy of Cointelegraph News/YouTube

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