Bitcoin, Ethereum hash rates start recovering as Chinese miners redeploy overseas

Quick Take

  • The hash rate securing Bitcoin and Ethereum is slowly recovering as some Chinese miners have completed their relocations.
  • Shenzhen-headquartered BIT Mining said it has already deployed Bitcoin and Ethereum mining equipment outside China.

The hashing power securing the world's two largest blockchains is on track of a slow recovery, as some Chinese miners have gradually completed their relocation after the crackdown.

Based on The Block's Dashboard, the seven-day moving average of Bitcoin's hash rate has slowly climbed up to and remained at the 100 exahashes per second (EH/s) level over the past three weeks.

Following China's crackdown on the bitcoin mining industry, power stations across multiple provinces have been ordered to suspend energy supply to mining facilities. Bitcoin's hash rate initially plunged to below 90 EH/s, a level not seen since early 2020. With the slow recovery, bitcoin's mining difficulty is expected to post a 4% growth in its next adjustment, after having recorded four consecutive drops since mid-May.

Although China's initial crackdown comment specifically said it was about bitcoin mining, the shutdown orders that were eventually handed down locally also affected the mining farms that housed graphic cards and ASIC miners securing the Ethereum network. That situation sparked Ethereum miners to dump their used GPUs on the secondhand marketplace.

Similarly, the hash rate on Ethereum also took a hit by over 20% after China's crackdown orders but has steadily recovered to above 500 terahashes per second.

Plugging back in

The hash rate rebound suggests that at least