The Bitcoin (BTC) mining hash rate has hit a new record high of 138 EH/s, surpassing the previous record high of 136 EH/s which was set on both February 29 and May 9.
Notably, this means the crypto mining sector has completely recovered from the post-halving downturn. After the May 12 block halving, when Bitcoin (BTC) mining revenue was cut in half, the Bitcoin (BTC) hash rate plummeted from 136 EH/s to as low as 81 EH/s in only a few days.
Equivalently, over 50 EH/s of mining equipment was turned off due to a lack of profitability. This means that numerous mining farms shut down, tons of mining equipment was being liquidated, and due to the glut of machines that had just been turned off, mining manufacturers like Bitmain saw drastically reduced sales and inventory buildups.
Indeed, in the weeks immediately following the halving it was uncertain if the mining industry would ever recover, especially since the Bitcoin (BTC) price was so stagnant.
However, the hash rate has steadily climbed since then, and now it appears all of the mining rigs that were shut down after the halving have been turned back on. This is likely driven by Bitcoin’s (BTC) price rise to over $10,000, which has increased mining profitability.
This is excellent news for mining manufacturers like Bitmain, MicroBT, and Canaan, since now the glut of rigs that were turned off after the halving is gone, and miners are buying up new rigs again. In other words, the outlook for mining manufacturers has turned from dismal to optimistic as mining rig demand returns.
On a final note, this could just be the beginning of a massive surge in Bitcoin’s (BTC) hash rate, especially if Bitcoin (BTC) thoroughly surpasses the $10,000 long term resistance level and climbs towards $20,000. If the rally this week on the Bitcoin (BTC) market continues, there is no doubt that the Bitcoin (BTC) hash rate will begin to rise exponentially.
Indeed, if things go well for the Bitcoin (BTC) market in the coming year, then a hash rate above 1 Zetta Hash (ZH) is quite probable, which would continue the long term trend of the Bitcoin (BTC) hash rate increasing by orders of magnitude.