Since the start of 2021, the cryptocurrency mining sector has grown tremendously. Although the month of May and June was a letdown for the mining sector, still, the overall mining growth has been tremendous in 2021.
It was during the Chinese crackdown on the mining sector in the months of May and June that caused a huge drop in hashrate. However, the hashrate has been constantly growing since the June downfall. According to one of the major on-chain analytics firms, Glassnode, the hashrate has been constantly recovering since June.
On Monday, September 20, 2021, Glassnode has shared a “Week on Chain” report where it has provided details around Bitcoin mining. The data shows that the balances for miners for BTC are constantly experiencing a rise.
The firm has reportedly shared information around the wallets of the Bitcoin miners. According to the firm, in the past six and a half months, the wallets of the miners have mined and collected over 14,000 Bitcoins. The data shows that the overall value of the Bitcoin accumulated by the miners is around $600 million.
In the report, Glassnode has also stated exactly how the behavior of the miners has been since the cryptocurrency market turned bullish in 2020 and 2021. According to the firm, the miners have held on to a larger portion of Bitcoin they have mined throughout 2020 and 2021.
The miners are only liquidating Bitcoin when they have to pay for the expenses of running the operations. Most of the time, Bitcoins are being used to pay for the hardware and electricity bill expenses.
As the hashrate is constantly gaining on its pre-crackdown momentum, the miners’ accumulation of Bitcoins is also trending. According to Glassnode, the overall mining hashrate for Bitcoin had dropped over 51% in the month of June. The data shows that the hashrate for Bitcoin had dropped all the way down to 90 Exahashes in the month of June.
Since then, the hashrate has recovered and it has recovered 52% coming all the way up to 137 Exahashes at the time of writing.
It was the regulatory crackdown carried out on the mining sector in China that dispersed the mining firms. However, with no place to go within the Chinese jurisdiction, the crypto-mining firms had to relocate to other parts of the world where the situation was favorable.
After the successful relocation of the mining firms to other parts of the world, the hashrate has started recovering. The firms are now starting their mining operations and so are the hashrate that had experienced a demise. As of now, the hashrate for Bitcoin mining operations is still 34% less than what it was in the month of April.