In the picture, we can see a significant decrease in the Bitcoin mining difficulty level. The difficulty level has just dropped dramatically recently, meaning that there is less competition among miners.
When there are more and more miners mining BTC, the level of competition increases. This then increases the difficulty level of mining since more computing power is required to find a hash meeting the criteria of the BTC protocol.
Recently, the drop in the BTC price and the rise in energy prices have caused much financial exhaustion, which makes some miners have to stop mining. As a result, the Hashrate has had the tendency to go down.
When Difficulty decreases, the block verifying strategy becomes easier, making a good condition for more miners to start mining BTC. This explains why the Hashrate now spikes while the Difficulty level is plummeting.
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