It appears that many Chinese miners have completed their annual migration from Sichuan, with the Bitcoin hash rate increasing by more than 40% in two days.
The power of the Bitcoin Network (BTC) has increased by approximately 30% in the last 24 hours, which, if maintained, suggests that there could soon be a major adjustment in difficulty.
According to Coinwarz, the Bitcoin hash rate currently stands at 157.5 exahashes per second (EX/s) after briefly exceeding 160 EH/s. As of the close of this edition, the hash power of BTC has increased by 42% in two days.
1-month Bitcoin hash rate graph: Coinwarz
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The peak comes after a sharp decrease in hash power in late October, which many analysts attributed to the end of the rainy season in the Chinese mining center of Sichuan.
It is estimated that the province’s abundant and cheap hydroelectric power attracts about 80% of Chinese miners during the wet season. In December, CoinShares estimated that Sichuan accounted for 54% of global mining activity.
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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 have re-established operations in other local mining centers such as Xinjian and Inner Mongolia.
The sudden increase in mining activity suggests that the network is likely to produce another major hardship adjustment.
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A major upward adjustment would come in the face of concern from non-Chinese miners who have been enjoying greater benefits after October’s apparent migration from Sichuan resulted in a negative hardship adjustment of 16%, the second largest downward adjustment in Bitcoin’s history.
Earlier this week, the world’s largest private sector hydroelectric power generator, Russia’s En+ Group, announced that it will launch a crypto coin mining company in partnership with local company, BitRiver.