Surging Bitcoin Network Hash Rate Puts A Historic Rally Into Play For BTC

Bitcoin network hash rate has ascended to a lifetime high amid the BTC price facing a bumpy quarter.

As per data from Coinwarz, bitcoin’s hash rate peaked at 261.44 exhashes per second (EH/s) at a block height of 734,107 this week as miners raced to win the lottery and submit the next block. As of writing, Bitcoin’s hashrate has dropped to 239.10 EH/s.

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The hashrate surge has also presented new complications with Bitcoin’s difficulty tapping a new high of 29.79 T. For context, Bitcoin mining difficulty refers to how hard it will be to mine the next block and is a measure of how many hashes must be generated to find a valid solution to solve the next bitcoin block and earn the mining reward.

According to Coinwarz, this difficulty is set to increase and should adjust around May 11, 2022, 08:03:17 AM UTC, increasing the Bitcoin mining difficulty from 29.79 T to 30.45 T in 1732 blocks.

The meteoric rise in the Bitcoin network’s hashrate comes despite China cracking down on mining operations in 2021. What started as a blanket ban on crypto mining in China in April last year quickly escalated into a full ban towards the end of Q3. With government agencies outlawing Bitcoin mining and punishing miners, this led to a mass exodus of ASIC miners to other crypto-friendly locations.

With Bitcoin’s price recovering towards the end of June, the global hash rate recovered fully and tapped an all-time high of 181.77 EH/s in early December, a scenario that could likely play out again according to experts.

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China’s ban also created new rivals with the U.S taking first place in the global hash rate chart, followed by Russia and then Kazakhstan. Now, less than a year after tapping an all-time high, Bitcoin’s hashrate has jumped over 160%.

According to a recent report by Arcane Research, the rise in Bitcoin’s global hashrate can be tracked to a surge in the number of publicly listed companies joining the mining business. As per the report, 19% of the global hashrate is now controlled by publicly listed companies, up from 3% in January 2021.

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