Bitcoin Hashrate Retraces Back to May Highs

Despite the mining ban by China that saw Bitcoin hashrate dip 50 this year the asset has now retraced back to its former levels
Despite the mining ban by China that saw Bitcoin hashrate dip 50 this year the asset has now retraced back to its former levels

Despite the mining ban by China that saw Bitcoin hashrate dip 50% this year, the asset has now retraced back to its former levels.

According to the latest estimates, Bitcoin hashrate is now back at the same levels it was back in May, just before China pronounced the ban on Bitcoin mining industry.

Bitcoin Hashrate back where it was

Five months after the biggest ever migration in the decade-long history of Bitcoin, network fundamentals have made a major comeback.

Even as miners kept relocating and starting over, the recovery of Bitcoin hashrate has been coming in leaps and bounds. And just like the hash rate, network difficulty is now also nearing its peak.

Although, it’s not quite possible to measure hash rate in definitive terms, but it has always accounted for the whole China mess, doubling from its bottom several months back.

Also, the mining difficulty is expected to increase by at least 5.7% next week, thereby bringing it just 4 trillion off of its 25 trillion record high.

Not stopping at that, Bitcoin will also be sealing an eighth straight increase in difficulty — the first of such since 2018.

In a quick note, the founder of investment firm Capriole, Charles Edwards said that hash rate has only ever been higher than today on only 6 other days in history.

Bitcoin may have gained 50% since May, but sources are saying that China may now be starting to regret its ban decision.

Skepticism around miner trend retest

Meanwhile, there remains some skepticisms surrounding the sustainability of current Bitcoin price action, as data analysis show.

Following after BTC/USD dipped to $58,000, figures showing miner costs are pointing to a potential local top, that of course, is if historical patterns and trends are to be followed.

Still however, miners have not really been in so much of a hurry to sell earned coins in recent months.