New highs in Bitcoin hash rate remove all traces of China’s mining ban

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Bitcoin (BTC) has virtually removed all traces of the mining ban that has seen the hash rate plunge 50% this year.

According to the latest estimates, the network hash rate has now returned to May levels, just before China banned its Bitcoin mining industry.

The hash rate recovers the trough

Five months after the start of the biggest migration in Bitcoin’s history, network fundamentals have made a comeback.

By leaps and bounds as the miners moved around and started over, the recovery in hash rate and network difficulty is now approaching a tipping point.

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While impossible to measure in definitive terms, the hash rate has apparently accounted for the entire China debacle, doubling from its low several months ago.

Likewise, the mining difficulty is expected to increase by 5.7% next week, bringing it to 4 trillion from its record of 25 trillion.

Not only that, but Bitcoin will seal an eighth consecutive increase in difficulty – the first time such an event has occurred since 2018.

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“The hash rate was only higher today than 6 other days in history”, Charles Edwards, founder of investment firm Capriole, wrote in the associated comments.

“We are reaching new historic heights in network security. It’s kinda unbelievable.

Bitcoin hash rate table. Source: Blockchain

Bitcoin has gained 50% since May, while sources suggest China may start to regret its move.

Warnings about the new miners trend test

Meanwhile, other data analysis has called into question the sustainability of Bitcoin’s current price action.

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After BTC / USD fell to $ 58,000, figures covering miners’ costs pointed to a potential local high based on historical patterns.

Nonetheless, miners have not been in a rush to sell coins earned in recent months, a trend that continues.

Bitcoin miner exits graph. Source: CryptoQuant