The BTC hash rate recovered from the recent Chinese mining crackdown but things are still not back to normal as we can see more in our latest bitcoin news.
Chinese miners had to relocate after the state crackdown on crypto so it will take a while to reverse all the negative effects that the Chinese policies had on the global crypto market. The BTC hash rate recovered and increased by almost 5% overnight according to the charts so now 104 EH/s back on the network which is an indicator of a slow recovery from a tough crackdown that china sent most of the miners offline. The hash rate initially dropped by 17% last week after the state-issued shutdown in Sichuan which is a province popular for mining operations due to the excess of cheap hydroelectric power. The order ended up in 26 mining farms shut down.
Bitcoin did well to recover as many miners already relocated to North America and Kazakhstan although the network’s hash rate was still lower than this time last year. The Chinese blockchain journalist Colin Wu tweeted that:
“it is expected that it will be difficult to return to [its former level of] 130E in half a year, unless China’s policy is loosened.”
The hashrate of Bitcoin began to slowly rise, and some Chinese miners' machines began to land in Kazakhstan and North America, but it is expected that it will be difficult to return to 130E in half a year, unless China's policy is loosened. pic.twitter.com/EQp29iumOz
— Wu Blockchain (@WuBlockchain) June 26, 2021
Since Wu’s tweet, Bitmain-owned Chinese mining farm Antpool dropped by 1200 PH/s conceding top place to another pool called ViaBTC. For Wu, the number outlined the link between crypto and Chinese policy decisions and he said:
“We cannot underestimate the influence of China on the cryptocurrency industry.”
The current crackdown started in mid-May when the three payment associations in the country reiterated more support for the central bank’s ban in 2017 on financial companies engaging in crypto transactions so, after the announcement, the price of BTC dropped 30% over $40K to $30,415. even though the news is fresh, BTC is far from recovering to its previous ATH of $64,800.
As recently reported, Bitmain technologies suspended the sales of its mining machinery and the suspension of sales came amidst the crackdown on mining in china. Bitmain Technologies as one of the industry’s biggest BTC mining machine manufacturers decided to suspend the sales of BTC mining machines a few days after China’s crackdown on the entire industry. Bitmain said a day ago that Bitmain suspended the sales of machines following a 75% price drop on mining machinery. The confluence of various factors reportedly led to this shift as Colin Wu who is a crypto-journalist in China, reported that the miners shut down their machines they are selling those used machines second-hand which is impacting Bitmain’s sales.
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