The hashrate dropped 1.26% after the Bitcoin difficulty adjustment algorithm changed at block 731,808. The DAA is expected to increase by 3.21% in roughly three days which will cause network difficulty to rise from the current 28.23 TeraHashes to a lifetime high of 29.13 TeraHashes.
The DAA is designed to maintain a 10-minute timespan between forming a new block. If it takes more or less than 10 minutes to solve the cryptographic puzzle, the algorithm respectively decreases or increases the difficulty. The increased hashrate indicates that more miners are jumping in, a sign that can be bullish for Bitcoin’s price.