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Bitcoin Mining Difficulty Hits New All-Time High
The latest trend in mining difficulty has analysts forecasting positive price action.
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Bitcoin mining difficulty surged to a new all-time high as competition surges. New highs for this indicator have historically signaled large price moves on the horizon.
What's the scoop?
- Difficulty Spike: Bitcoin’s mining difficulty increased by 3.9%, hitting a new record of 95.67 terahashes (T) on Tuesday. The hashrate reached a historic high, surpassing 700 exahashes per second (EH/s) for the first time.
- Profitability Pressure: Rising difficulty makes it harder for miners to turn profits, prompting small miners to unplug or sell holdings. With smaller players dropping out, public miners now control nearly 30% of the network’s hash power.
Bankless Take:
Historically, rising Bitcoin mining difficulty and revenue have coincided with the start of bull runs. As miner revenue approaches the key 365-day simple moving average (SMA), historical patterns suggest that the market could be on the brink of a significant upward move. This pattern, combined with record-breaking hashrates, signals that the next bullish phase for Bitcoin may be right around the corner. With operational challenges weighing on smaller miners, a jump in price would be an appreciated next step.
