Bitcoin has now seen a dramatic recovery in its hashrate since China had carried out its crackdown about half a year ago. The hashrate had dropped significantly when the region had made crypto mining activities illegal and had chased miners out of the country. China, then known as the bitcoin mining capital of the world, had hosted about 70% of mining activities.
Following the crackdown, the mining hashrate from the region crashed to zero. This had greatly affected the mining community which had scrambled to find new homes for their mining farms. Now, five months later, most of the miners have resettled into other parts of the world and mining hashrate has recovered, soaring to new highs in the process.
Bitcoin Hashrate Sets New Record
Bitcoin’s hashrate had slowly recovered after bottoming out in July of 2021. There was a steady growth marked by miners finding new places to set up their activities. The majority of the months following the crackdown saw a rise in the hashrate. Miners had found a new home in countries such as the United States where various states made significant efforts to help the miners settle in.
Bitcoin had seen its hashrate hit its highest point at the time in May during the first bull run. Hashrate had run-up to a high of 180.82 EH/s on a seven-day moving average scale. The subsequent drop has been the largest recorded drop in hashrate as numbers hit as low as 84.79 EH/s.
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December has however brought with it good tidings as the BTC hashrate had recovered greatly at the beginning of the month alone. The hashrate now sits at a new record high of 181.99 EH/s on a seven-day moving average.
BTC's 7-day hash rate moving average hit an ATH | Source: BTCUSD on TradingView.com
Reclaiming The Narrative
The exodus of miners out of China was unprecedented in the space. There was a lot of speculation as to how the digital asset would fare after going through such a drastic setback. Bitcoin has however proved that it can come out unscathed in even the world environments.
Following the price crash that occurred in response to the crackdown, bitcoin had staggered for a bit. The next few months would prove to be eventful as the digital assets had hit new all-time highs in the months following, reaching as high as $69,000 at one point.
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Growing adoption had also propelled the cryptocurrency on its journey. One of those is El Salvador making BTC a legal tender. Since then, bitcoin has seen significant growth.
Lightning network nodes have shot to new highs to accommodate the growing use cases of bitcoin, as well as active addresses once again crossing the one million mark.
Featured image from iStockPhoto, Charts from TradingView.com
