Bitcoin Hashrate V Shape Recovery

​The Bitcoin network’s one-month implied hashrate saw almost four months of steady increases since the beginning of 2021, topping at 166 exahashes per second (EH/s) in April. Throughout that month and the next, it lateralized but started dropping sharply as June began. By July 1, the Bitcoin network hashrate had fallen by nearly 30%, bottoming later that month at around 95 EH/s. But since then, hashrate has been recovering quickly, increasing by over 30% in about 30 days and setting a V-shape recovery in motion.

The thriving computing power employed on the Bitcoin network started hovering down as China began tightening bitcoin mining regulations in May. In under two months, provincial governments had already issued plenty of shutdown orders and inspection notices to local miners, who saw no other option than to flee the country for good. But since the great ASIC exodus ensued, some farms started being redeployed overseas, bringing all those banned miners back online and triggering a strong hashrate recovery.