The hash power of the Bitcoin (BTC) network is up about 30% in the last 24 hours, suggesting, if sustained, that there will be a big difficulty coming soon.
According to Coinwarz, Bitcoin’s hash rate is currently at 157.5 exahashes per second (EX / s) after briefly pushing above 160 EH / s. At the time of writing, BTC’s hash power is up 42% in two days.
The spike follows a sharp drop in hash power in late October, which many analysts attribute the end of the rainy season in the Chinese mining hub of Sichuan.
The province’s abundant and cheap hydropower is estimated to be circulating 80% of Chinese miners during the wet season. In December, CoinShares estimated that Sichuan accounted for 54% of global mining activity.
Quantum Economics analyst Jason Deane speculated that the sudden increase in Bitcoin’s hash power could be a sign that many Chinese miners have completed their migration from Sichuan and reinstated activities in other local mining hubs such as Xinjian and Inner Mongolia.
Whoa! big leap in it #bitcoin hash rate over the past 10 hours (+ 29.7% valley to peak) Large number of machines just got online somewhere, possibly miners in the Sichuan area have moved? pic.twitter.com/UKahgQ37Tm
– Jason Deane (@JasonADeane) November 9, 2020
The sudden spike in mining activity suggests that the network is likely to produce another significant difficulty adjustment.
A major upward adjustment would irritate non-Chinese miners who enjoyed higher profits after October’s apparent migration from Sichuan resulted in a negative 16% difficulty – the second largest downward adjustment in Bitcoin’s history.
Earlier this week, the world’s largest private-sector hydropower generator, Russian firm En + Group, announced that it launching a cryptocurrency mining venture in collaboration with the local company BitRiver.