Just three months after the world’s second biggest economy kicked out some 50% of all bitcoin miners in China, bitcoin’s hashrate is back to nearly all time high.
As can be seen above, bitcoin’s hashrate has risen to 177 exahashes a second (EH/s), up 3x from a brief low of just 58 EH/s on June 27th.
It’s still below the all time high of 198 EH/s reached on April 15th, but not by much any longer as it nearly fully recovers.
Some suggest the recovery is partly because El Salvador has started volcano mining bitcoin, but the president of El Salvador Nayib Bukele said they were still testing it with it not quite yet fully rolled out.
In addition the hash increase has been fairly gradual over months, suggesting there isn’t a one off jump but more a gradual rise in new hash or re-instatement of previous hash.
That may be because mining has become profitable once again with Digihost for example stating they’ve seen a 218% increase in production during the quarter to 133 BTC.
Marathon also reported an increase of 91%, with it mining 1,252.4 bitcoin during the third quarter, worth some $60 million.
This rise in hash may also indicate an increase in demand for bitcoin as new entrants, some of whom may be holders, ‘take’ bitcoin off more business orientated mining entities.
The stock traded miners in addition are also holding as they can raise capital from the stock market instead of selling, although they have to walk a fine line between stock value and crypto value.
That adds new dynamics to the relationship between hash and price, with the June events showing that there indeed appears to be such a relationship.
Bitcoin’s price thus has also risen to near $50,000 with it currently trading at $48,500 as of writing.