Despite China’s crackdown, the Bitcoin hashrate is still setting a new ATH
China’s crackdown on Bitcoin mining, which caused the hash rate to drop by 50% this year, is no longer a cause for concern as the network’s fundamentals fully rebound.
According to the latest estimates, the network hashrate is now back at the May level, just before China banned Bitcoin mining.
Bitcoin hashrate is recovering strongly
Five months since the largest migration in Bitcoin history began, the network’s fundamentals have rebounded significantly.
The miners go by leaps and bounds as the miners shift their locations and start over. A recovery in hashrate and network difficulty is now nearing its previous peak.
While impossible to measure accurately, the hash rate appears to have returned prior to China’s crackdown, doubling from its low a few months ago.
Mining difficulties are also expected to increase by 5.7% next week, lifting them from their record high of 25 trillion to 4 trillion.
Additionally, Bitcoin will surge in trouble for the eighth year in a row – the first time since 2018.
Charles Edwards, founder of investment firm Capriole, wrote in related comments:
The hash rate was only higher on only 6 other days in history than it is today. We are tapping new all-time highs in network security. It’s kind of incredible.#Bitcoin is Hydra pic.twitter.com/zRPuc7nMLb
– Charles Edwards (@caprioleio) October 27, 2021
“Only 6 days in history have a higher hashrate than today. We are reaching an all-time high in cybersecurity. It’s incredible.”
Bitcoin is up 50% since May, while sources suggest China may regret its decision.
Miner trend retest warning
Meanwhile, other data analytics are questioning the sustainability of the current Bitcoin price action.
After falling to $ 58,000, metrics, including mining costs, indicated potential local highs based on historical models.
Miner turnover ➗ hash rate:
This shows the cost of producing a marginal unit of BTC per hash.
Testing blue trendlines for resistance coincided with price spikes.
Will we see something similar again? pic.twitter.com/La1UbNxTL5
– Nunya Bizniz (@Pladizow) October 27, 2021
Miners’ Revenue and Hashrate: This shows the cost of generating one unit of BTC margin per hash. Test the blue trend lines when the resistance level coincides with the price spikes. Will we see something similar again? “
However, miners have been in no hurry to sell their hard-earned coins in recent months, a trend that is continuing.
Bitcoin Miner Flow Chart | Source: CryptoQuant
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According to Cointelegprah