New Bitcoin hash rate highs remove any trace of China mining ban

China’s exit from Bitcoin mining is now all but unnoticeable as network fundamentals take care of their own recovery.

Bitcoin (BTC) has all but deleted any trace of the mining ban, which saw its hash rate dive 50% this year.

According to the latest estimates, the network hash rate is now back at levels from May, just before China outlawed its Bitcoin mining industry.

Hash rate recovers the dip

Five months since the largest-ever migration in Bitcoin’s history began, network fundamentals have staged a major comeback.

Coming in leaps and bounds as miners relocated and started over, the recovery in hash rate and network difficulty is now approaching a seminal point.

While impossible to measure in definitive terms, the hash rate has seemingly accounted for the entire China debacle, doubling from its bottom several months ago.

Likewise, the mining difficulty is set to increase by 5.7% next week, bringing it to within 4 trillion of its 25 trillion record high.

Not only that, but Bitcoin will seal an eighth-straight difficulty increase — the first time such an event has occurred since 2018.

“Hash rate has only been higher than today on just 6 other days in history,” Charles Edwards, founder of investment firm Capriole, wrote in associated comments.

“We are knocking on new all time highs in network security. That’s kind of unbelievable.”

Bitcoin hash rate chart. Source: Blockchain.com

Bitcoin has gained 50% since May, while sources hint that China could be starting to regret its decision.

Warnings over miner trend retest

Meanwhile, other data analysis questioned the sustainability of current Bitcoin price action.

Coming after BTC/USD dipping to $58,000, figures covering miner costs pointed to a potential local top based on historical patterns.

Miner Revenue ➗Hash Rate:

This shows the cost to produce a marginal unit of BTC per hash.

Testing blue trendlines as resistance has coincided with peaks in price.

Will we see something similar again? pic.twitter.com/La1UbNxTL5

— Nunya Bizniz (@Pladizow) October 27, 2021

Nonetheless, miners have been in no hurry to sell earned coins in recent months, a trend that continues.

Bitcoin miner outflows chart. Source: CryptoQuant

Publication date

10/28/2021 - 08:13

Author

William Suberg

Article source

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