Bitcoin mining has fully recovered since the Chinese crypto crackdown earlier this year, which effectively shut down more than half of the world’s miners overnight.
Although Bitcoin mining recovered, the price of the bitcoin still remains below $50,000 region.
Hashrate, a statistic used to quantify the computational power of all miners in the bitcoin network, is used to determine the recovery. The data from Blockchain.com paints a clear picture of the recovery and the prior plunge.
Data from the image above shows that the network’s hashrate is up about 115% in five months.
China had long been the core of the crypto mining business, with estimates showing that it accounted for 65% to 75% of global bitcoin mining.
However, more than 50% of bitcoin’s hashrate disappeared from the global network after Beijing essentially banned the country’s cryptocurrency miners in May.
According to Rystad Electricity, the crackdown in China was sparked by Bitcoin miners’ usage of energy from illegal coal extraction, which provided about 63% of the energy utilized in crypto mining in the country.
The Chinese authorities claimed at the time that Bitcoin mining, which uses a lot of electricity, was endangering people’s lives and undermining President Xi Jinping’s environmental ambitions.
During the crackdown, 26 major Bitcoin mining hubs were forced to shutter in Sichuan, and during one week in June more than 70% of the total mining capacity in China went offline, industry analysts estimate.