Bitcoin appears to have finally overcome the effects of the mining ban in China, which saw its hash rate plunge by up to 50% earlier this year.
According to data from Blockchain.com, the network hash rate has now recovered to its May level, prior to China’s decision to crush its crypto mining industry.
Fast forward to five months after the largest-ever migration in Bitcoin’s history started, miners have staged a massive recovery. The recovery in hash rate and network difficulty is now approaching an influential milestone.
The hash rate has doubled from its lowest point from several months ago. Similarly, the mining difficulty is set to rise by 5.7% next week, taking it to within 4 trillion of its 25 trillion record high. Besides that, Bitcoin is set to reach an eighth-straight difficulty increase for the first time since 2018.
Charles Edwards, the founder of investment firm Capriole, commented that the “hash rate has only been higher than today on just 6 other days in history […] We are knocking on new all-time highs in network security. That’s kind of unbelievable.”
Since May, Bitcoin has gained 50%, and it is suspected that China is beginning to regret its decision.
Other data analyses questioned the sustainability of the current Bitcoin price action. BTC/USD dipped to $58,000 this week, while the figures covering miner costs indicate a potential local top based on historical patterns. However, miners have shown no haste to sell the coins they have accumulated in recent months.