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December 5, 2022
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Guide & Analysis

The metric that China’s bitcoin mining migration is complete

The metric that China’s bitcoin mining migration is complete. Graph shows that mining difficulty has gone up again.

Bitcoin mining took a big hit when Chinese authorities began a crackdown on cryptocurrency mining. This led to an exodus of miners out of China. Which had been the world mining headquarters at the time. More than 70% of all mining in the world is carried out in China before the crackdown begins.

Then saw a decline in bitcoin mining difficulty. This was immediately followed by falling prices across the market as miners looked for other places to settle.

A new metric now indicates that miners may have completed their mining migration out of China. The graph shows that bitcoin mining difficulty has gone up again. Showing that miners who were forced out of China have now been able to resume their mining activities elsewhere.

The metric that China’s bitcoin mining migration is complete.

After the crackdown in China in May, the price of bitcoin suffered a significant drop in price. How miners had to have their mining platforms transported by helicopter and removed from the Chinese provinces. Bitcoin hash rate dropped during this time. Hitting annual lows as China took most miners offline after crackdown.

Historical charts showed that the price of cryptocurrency consistently increased as the mining difficulty increased. This is especially prominent during half of bitcoin. This occurs when the amount of bitcoins extracted per block is cut in half. And the halves happen every four years on the network.

This is a design that has introduced even more scarcity over time as more coins are mined. The halves will continue until all 21 million are mined. The most recent halving has seen the price of bitcoin soar to a new all-time high. Hitting $64,000 at its peak, before experiencing dips that pushed the price down.

Future Bitcoin Price

Miners coming back fully online will see the price of bitcoin go even higher. Mining difficulty will continue to increase as miners move into new locations.

Bitcoin has seen an increase in movement as volatility and trading volumes start to increase. The price has so far made massive rallies after recent short pressures that saw the price add 12% in one day. And seeing gains of over 21% over the course of a week.

This recovery comes after the price of the digital asset fell for months after the bull run. Bears controlled the market for nearly a month. Pulling the price down with a fall.

After a wave of positive market news, the price of bitcoin is recovering. More and more indicators show that the market may be heading towards another bull market.

Bitcoin Price List from TradingView.com

Source: BitcoinIst

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