Bitcoin hashrate is recovering after the mining crisis in China

According to Ycharts, Bitcoin’s hash rate rose almost 5% overnight. Now 104 EH / s are back on the network, showing a slow recovery after a tough crackdown by China that took many Bitcoin miners offline.

The hash rate dropped 17% last week after the state shut down in Sichuan, a province known for mining due to an abundance of cheap hydropower. The order forced 26 mining operations to close.

Bitcoin has rallied very well after reports reportedly moving many Chinese miners to North America and Kazakhstan – although the network’s hash rate is still 1.68% lower than it was around that time last year. Chinese blockchain journalist Colin Wu tweeted:

“Expect to be difficult to return [mức cũ] 130E for half a year, unless China’s policy is relaxed. “

Bitcoin’s hashrate began to slowly increase, and some Chinese miners ended up in Kazakhstan and North America, but it is expected that it will be difficult to get back to 130E in half a year unless China’s policies are relaxed. pic.twitter.com/EQp29iumOz

– Wu-Blockchain (@WuBlockchain) June 26, 2021

Since Wu’s tweet this morning, Bitmain-owned Chinese mining farm Antpool has dropped 1200 PH / s (four million hashes per second) and has ceded the top spot to another Chinese mining pool called ViaBTC.

All in all, we cannot underestimate the influence of China on the cryptocurrency industry and we also have certain expectations for a future opening of politics (although this is not possible in the short term).

– Wu-Blockchain (@WuBlockchain) June 26, 2021

For Wu, the numbers still underscore the close connection between cryptocurrencies and China’s political decisions.

“We cannot underestimate China’s influence on the crypto industry.”

China’s crackdown began in mid-May when three of the country’s payment associations reiterated their support for the central bank’s 2017 ban on the participation of financial firms in financial transactions. Following that announcement, Bitcoin price fell 30% from over $ 40,000 to $ 30,415.

While this news may seem relatively harmless, Bitcoin is far from bouncing back to its all-time high of $ 64,800 in mid-April, with Bitcoin currently trading at $ 33,000.

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