Bitcoin [BTC] clinched 25% weekly gains and was currently flirting with a $42K level. The recovery comes amidst considerable network improvements. The world’s largest cryptocurrency broke the second-longest streak of difficulty mining drop on the 31st of July. At the time of writing, the figure stood at 14.50 T after surging by 6%.
The increase was observed for the first time since China’s crackdown on cryptocurrency mining in May this year which resulted in four consecutive drops. It continued to decline in June and July as the crackdown intensified in China, causing them to leave the country or sell their mining equipment. The damage was severe since Chinese miners contributed to more than 65% of the Bitcoin network’s hash rate at the time.
Downward trend slowly reverses as BTC miners complete relocation process
The largest drop in mining difficulty occurred on the 3rd of July of this year when the rate fell by 28%. Two weeks later, the Bitcoin network encountered another drop of almost 5%. While it was still far from the all-time high of 25.05 T, the positive adjustment revived the network from the 13 T level, where it had dropped during the previous adjustment.
Several industry experts have speculated the quick expansion of mining facilities across North America, as well as the comeback of Chinese miners via overseas hosting sites as two major factors that have fostered the growth of Bitcoin mining difficulty.
Bitcoin’s Hash rate up by 27%
Besides, this difficulty adjustment essentially marks the beginning of a surge in hash rate in the coming year. Since meandering in the lows below 85 exahash per sec, the BTC hash rate has gone by more than 27% in less than a month. It has managed to maintain an upward consistency. Needless to say, Beijing’s crackdown on Bitcoin and cryptocurrency mining has been no less than a disaster for miners in the country. But it can also be a stroke of good luck for the miners in other parts of the world.
Many experts are of the opinion that Bitcoin might have surpassed the minimum low difficulty point and since now the network could potentially follow an uptrend if there aren’t any regulatory upheaval or changing BTC price.