China’s ongoing crackdown on Bitcoin (BTC) mining resulted in a mass relocation of mining operations out of the country and it has led to a more than fifty percent drawdown in the Bitcoin network hashrate from an all-time high of 197.9 exahash per second (ehash/s) on April 15 to its current rate at 97 ehash/s.
Bitcoin network mean hash rate. Source: Glassnode
One token that was hit especially hard by the hashrate drop was the Bitcoin Standard Hashrate Token (BTCST), a project that collateralized the Bitcoin hashrate with each token representing 0.1 TH/s of Bitcoin mining power.
Data from Cointelegraph Markets Pro and TradingView shows that BTCST recently began to show signs of recovery after its price rallied 57% from a low of $13.57 on July 18 to an intraday high at $27.38 on July 19 as the Bitcoin hash rate begins to stabilize near 100 ehash/s.
BTCST/USDT 4-hour chart. Source: TradingView
Three reasons for the recent boost in BTCST include increased earnings