Even still, things are far from usual.
According to Ycharts, Bitcoin’s hash rate increased by about 5% overnight. The network now has 104 EH/s, signaling a steady comeback from China’s harsh crackdown, which took many Bitcoin miners offline.
Following a state-issued closure order in Sichuan, a province popular for mining operations because to an abundance of inexpensive hydroelectric power, the hash rate decreased by 17% last week. The order prompted the closure of 26 mining farms.
Although the network’s hash rate is still 1.68 percent lower than this time last year, Bitcoin has recovered well—many Chinese miners have gone to North America and Kazakhstan.
“It is believed that it will be impossible to return to [its former level of] 130E in half a year, unless China’s policy is loosened,” Chinese blockchain journalist Colin Wu tweeted.
Since Wu’s tweet this morning, Antpool, a Bitmain-owned Chinese mining farm, has lost 1200 PH/s (quadrillion hashes per second), relinquishing first place to ViaBTC, another Chinese mining pool.
The figures, according to Wu, nonetheless show an inextricable correlation between crypto and Chinese policy decisions. He tweeted, “We cannot ignore China’s influence on the bitcoin business.”
The current Chinese campaign began in mid-May, when three Chinese payment groups reaffirmed their support for the central bank’s 2017 ban on financial firms engaging in crypto transactions. Bitcoin’s price plummeted 30% from over $40k to $30,415 after that statement.
Even if the news appeared to be little, Bitcoin is still far from its all-time high of $64,800 set in mid-April. It’s now worth less than half of that: $31,158.