Bitcoin Mining Difficulty Hits All-Time High as Prices Soar17. Januar 2023
• Bitcoin mining difficulty has increased by 10%, suggesting more miners are coming back online as prices recover.
• The difficulty has climbed to 37.59 trillion from the previous 34.09 trillion.
• Historically, a higher network difficulty is accompanied by a period of higher prices.
The cryptocurrency market has been booming over the past few weeks and Bitcoin is leading the charge. Prices are on the rise, and so is the mining difficulty of the leading cryptocurrency. The Bitcoin network’s mining difficulty increased by 10% in the latest adjustment, reaching a new all-time-high.
The mining difficulty adjustment took place at block height 772,128. This is the biggest downward change since October 10, 2022, when the metric rose by 13.55%, according to data from mining pool BTC.com. The difficulty has climbed to 37.59 trillion from the previous 34.09 trillion. „Bitcoin mining difficulty increased by 10.26%, to an ATH!“ mining pool f2pool said in a tweet following the adjustment.
The Bitcoin mining difficulty is a measure of how difficult it is to mine a Bitcoin block, or in more technical terms, to find a hash below a given target. A high difficulty means that it will take more computing power to mine the same number of blocks, making the network more secure against attacks. The latest increase in difficulty suggests that more miners are coming back online as prices continue to recover.
The increase in difficulty is a good sign for Bitcoin bulls. Historically, a higher network difficulty is accompanied by a period of higher prices. In contrast, plunging BTC prices sometimes force miners to go offline as it becomes unprofitable, which in turn leads to a drop in mining difficulty. The latest increase in difficulty comes as Bitcoin broke above key resistance levels, which could be a sign of further price increases.
Additionally, the increase in difficulty means that miners will need to be running more efficient machines to be profitable. Mining pool f2pool noted that if Bitcoin can go up above $23,000, machines that are more efficient than 40W/T can be running with profits at the electricity of $0.08/kWh.
Overall, the increase in Bitcoin mining difficulty is a sign that the cryptocurrency market is strengthening. As more miners join the network and difficulty continues to rise, it is likely that prices will follow suit. This is great news for Bitcoin bulls, and could pave the way for further price increases in the near future.