After dropping significantly due to China’s crackdown against the crypto mining sector, Bitcoin’s (BTC) hash rate is seemingly on its way back up as global mining networks decide to go back online. As per the report published by YCharts, the BTC hash rate resurged to 115.71 EH/s last Tuesday after dropping as low as 58.46 EH/s a month prior.
While still miles away from the all-time record it achieved last mid-April, with 198 EH/s, this marks a drastic 82.5% surge – implying revitalization within the mining industry.
For the past few weeks, Chinese authorities have locked down on crypto mining under the pretext of safeguarding its citizens from severely risky investments. This has forced several China-based crypto businesses to limit their crypto offerings significantly or ultimately migrate away from the country.
Back in 2019, before all the controversies regarding the negative impact crypto mining delivers against the environment, China’s BTC hash rate contribution reached as high as 75.53%, establishing itself as a bonafide mining powerhouse destination. After several mining bans, however, the country’s hash rate declined to 46.04%. Meanwhile, its closest competitor for the particular metric, the United States – where many businesses tend to migrate to today – recorded a global hash rate contribution as high as 16.85%.
The resurgence of the global BTC hash rate has positively impacted the market price of the dominant crypto, going back above the $40,000 threshold recently.