It is no longer a secret that miners are exiting China in droves or opting to sell their mining rigs. In April 2020, the Asian nation reportedly controlled about 70 percent of Bitcoin’s hash power. However, following the recent clampdown on crypto mining by Chinese regulators, this figure is expected to fall even lower.
According to a Bitcoin hash-power chart published by on-chain analytics platform, Glassnode, Bitcoin’s first phase of difficulty has been overturned due to the crash in hash rate.
The #Bitcoin difficulty ribbon has inverted, as the network responds to the 'Great Hash-power Migration'.This does not factor in the upcoming ~27% downwards adjustment expected on 3-Jul. This will invert the ribbon to the greatest extent since 2018.https://t.co/O3thrP6q5k pic.twitter.com/Hfz4J44152— glassnode (@glassnode) July 1, 2021
Glassnode asserts that its latest synopsis does not include the 27% downward adjustment expected by July 3. Nonetheless, Bitcoin’s hash rate could be sent to levels last seen in 2018.
Although Bitcoin has fallen by almost 50 percent from its all-time high value of nearly $65,000, the flagship cryptocurrency outperformed other altcoins in terms of market capitalization. Furthermore, despite the sharp market correction, Bitcoin’s current volatility is lower in comparison with January 2020.
According to the analytics firm, Bitcoin’s average hash rate was slightly higher on Tuesday than the previous day. It is, however, worth mentioning that the current hash rate is still half of the network’s peak value, recorded in mid-May.