Bitcoin’s mining difficulty has reached an unprecedented level of 95.67 terahashes (T), reflecting a 4% increase in just 24 hours.
Despite BTC price BTC $87 285 24h volatility: 2.3% Market cap: $1.74 T Vol. 24h: $47.27 B facing rejection at $69,000 levels and retracing 5%, the Bitcoin mining difficulty has hit an all-time high of 95.67 terahashes (T), surging 4% in the last 24 hours. So far this year, the Bitcoin blockchain has witnessed 22 difficulty adjustments, with 13 of them being positive.
In difficulty adjustment this year, the Bitcoin hashrate surged 27% surging from 72T to 92T. Another good thing is also that the surge in Bitcoin mining difficulty comes along with a record BTC hashrate. As of now, the BTC hashrate has surged to over 700 exahashes per second (EH/s).
With the surge in the Bitcoin mining difficulty, miners face increased pressure to maintain profitability. Thus, with more demand for computational power, the mining costs will also increase.
Photo: Glassnode
Following the Bitcoin halving event in April 2024 and a 50% drop in mining rewards, weak Bitcoin miners with outdated equipment have moved out of business. After the halving event, small miners started to unplug from the network leading to a 15% drop in the hashrate.
Also, other players have been selling their BTC holdings partially in order to meet the rising operational costs. According to Glassnode data, miner balances have declined this year as weaker miners anticipated the upcoming halving and sought to fund their operations. Between November 2023 and July 2024, more than 30,000 bitcoins exited miner wallets, marking one of the longest distribution periods recorded.
However, since July, miner balances have stabilized and begun to show signs of accumulation, indicating that the remaining miners are better equipped to navigate the new market environment. Going further, the BTC mining industry is likely to consolidate among strong players with public miners controlling a record share of almost 30%.
Photo: Glassnode
BTC Price Rally and Bull Run Ahead?
Bitcoin bull runs are closely linked to rising miner revenue; as prices climb, mining earnings also increase. According to Glassnode data, the total dollar mining revenue, based on a 7-day moving average (7-DMA), has surpassed $35 million, reflecting an increase of more than $10 million since the lows observed in September.
However, since the halving in April, the BTC mining revenue has stayed below the 365-simple moving average (SMA) which is currently around $40 million. Historically, once the total miner revenue surges past the 365-SMA, it will coincide with a Bitcoin bull run.
As suspected, price is indeed dipping just a little bit deeper into the general green area for additional buy-side liquidity
Generally, BTC needs to hold the Channel Top (black) as support
Still successfully doing that, despite market-wide fear$BTC #Crypto #Bitcoin https://t.co/clfMAlP3fq pic.twitter.com/SC9mUKYUKc
— Rekt Capital (@rektcapital) October 23, 2024
The current BTC price retracement from $69,000 has led to a bearish sentiment. However, the technical chart shows that the BTC price is taking support at the upper end of the channel. Bitcoin must hold $66,000 for this rally to continue.
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