Bitcoin hashrate recovers six months after China’s crypto ban

Bitcoin’s hashrate has almost fully recovered just six months after China’s crypto ban sent miners fleeing to more hospitable shores.

Fast facts

Despite the recent price crash, the total Bitcoin hashrate stood at 180.5 million terahashes per second, almost approaching its all-time high of 180.67 million TH/s back in May, according to data from Blockchain.com.

The hashrate took a nose-dive earlier this year following China’s crackdown on the sector, plunging by over 50% to 84.79 million TH/s on July 3, the lowest since September 2019, though it has been steadily recovering since then.

Meanwhile, Bitcoin mining difficulty is set to increase by about 7% in the next adjustment that will likely occur this weekend, according to data from BTC.com.

China has been clamping down on the crypto mining industry since earlier this year. Notably, on Sept. 24, the National Development and Reform Commission — the country’s top economic planner — jointly issued a notice with 10 other authorities to implement a stepped-up ban on crypto mining. In the joint notice, the authorities clearly stated they intend to categorize crypto mining as an outdated industry, in a move to prohibit investments in the sector.

China’s latest attempts to crack down on the sector include detecting miners via IP addresses. For example, Qihoo 360, a Chinese internet company best known for its antivirus software programs, has built a system that could help the Chinese government track crypto mining activities. The company said last week that it detected 109,000 active mining IP addresses on a daily average in November, mainly in the Guangdong, Jiangsu, Zhejiang and Shandong provinces.