Some good news for the crypto community ever since China had ended Bitcoin (BTC) mining a while ago, as the miners continue to successfully relocate to other countries such as the United States and Kazakhstan. As a result of the miners moving elsewhere, the hash rate for both Bitcoin as well as Ethereum (ETH) has finally started to gradually recover. As of now, Bitcoin’s hash rate’s 7-day moving average was observed to have steadily been climbing up and has managed to stay at 100 EH/s for the previous three weeks.
Investors are hopeful that Bitcoin can get back on track after going through a tough couple of months, as the price has increased by nearly 1% since yesterday to finally reach $40,000 once again.
The effects of China’s crackdown
As per the Chinese government’s directive, all power stations in various provinces were ordered to shut down and cease providing energy to mining facilities. As a result, the flagship cryptocurrency’s hash rate had decreased to beneath 90 EH/s, which was a level that hadn’t been observed ever since the start of last year. Now, the hash rate is slowly recovering, and it is anticipated that BTC’s mining difficulty will post a growth of 4% during the next adjustment following four straight drops ever since mid-May.
Moreover, China’s decision had impacted the several mining farms which held graphic cards as well as ASIC miners that would normally be used to secure Ethereum’s network. This had caused the ETH miners to subsequently dump the used GPUs. Much like Bitcoin, Ethereum’s hash rate had taken a hit by more than 20% following the crackdown. However, it has since managed to slowly recover to over 500 TH/s.
Back to business as usual
As the hash rate begins its slow road to recovery, the rebound would seem to imply that a portion of the miners who fled China has indeed successfully completed the process of relocation and have now plugged in once more.
For example, BIT Mining (which conducted plenty of mining operations and activities in various Chinese provinces and districts) has stated that over 3,800 units of BTC mining equipment have been shipped and subsequently deployed in Kazakhstan, with the overall hash rate being 172 PH/s. Additionally, BIT Mining had also been involved in Ethereum mining, and so it bought 2,000 ETH miners (priced at about $30 million) back in February, which are all scheduled for continuous shipment as the year progresses.