Cointelegraph Team
Cointelegraph
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.
Nonetheless, miners have been in no hurry to sell earned coins in recent months, a trend that continues.
Bitcoin miner outflows chart. Source: CryptoQuant
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.