Bitcoin Difficulty Hits New All-Time High As BTC Price Nosedives

Bitcoin value has been buying and selling sideways prior to now weeks, considerably declining from the $29,000 help. This bearish sample unfold panic amongst merchants however has not deterred miners. As a substitute, Bitcoin mining contributors seem to have elevated.

That is evident within the elevated mining issue, which soared to a brand new file excessive. In line with accessible information, Bitcoin mining issue surged 6.17% within the final week, alongside a spike in community exercise on August 22.

Bitcoin Mining Problem Spikes Up Amid Nosediving Costs

Whereas BTC value tanked by over 10% in a 7-day interval, miners’ confidence stays at its peak. In line with data from btc.com, this uptick marks the sixth-largest improve in Bitcoin mining issue in 2023. For context, Bitcoin mining issue measures the issue and time it takes to resolve a posh cryptographic puzzle. 

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The Bitcoin community adjusts mining issue periodically relying on the variety of miners onboard. The subsequent issue adjustment date is about two weeks aways, with the estimated fee at 16.05%. Moreover, the hash fee will increase as extra miners compete for restricted Bitcoin block rewards, rising mining issue. 

Subsequently, the uptick in mining issue suggests Bitcoin’s bearish value trajectory has not affected miners’ profitability. 

Enhance In Hash Charges Displays Excessive Investor Confidence In Bitcoin 

Hash fee and mining issue correlate; due to this fact, because the Bitcoin mining issue will increase, the hash fee follows an identical pattern. Though calculating the hash fee is difficult and difficult, the continued determine is about to interrupt the prevailing file excessive of 538.05 EH/s. 

In an August 22 report: CryptoQuant analyst MAC_D attributed the elevated hash fee to excessive confidence in BTC and ETH community reliability and safety amongst traders.

MAC-D wrote:

Lately the costs of BTC and ETH have fallen by 10%. Nonetheless, the community safety and reliability have elevated.

He additionally recognized two believable causes behind the uptick within the hash fee. Firstly, the analyst defined that Bitcoin’s hash fee elevated throughout the latest value decline. He stated the commentary depicts that miners grew to become extra energetic amid the downtrend. Secondly, MAC_D talked about that staked ETH has elevated regardless of the decline in Ether value.

Nonetheless, the analyst believes the autumn in value suggests BTC and ETH have change into undervalued. And based on him, this presents a chance for bullish traders to build up extra property in anticipation of the following bull run.

This assumption should have prompted miners to extend their mining capability, rising the hash fee and issue. And information from the on-chain analytics platform Glassnode helps these claims. 

In line with Glassnode data, there was a slight improve within the variety of BTC within the portfolios of mining companies. As of August 22, miners’ BTC holdings hovered over 1.83 million Bitcoin. This determine represents a 0.08% improve from the worth originally of August.

Featured picture from Pixabay and chart from TradingView.com