Bitcoin mining difficulty has skyrocketed once again as miners move to get the best from the network.
The Bitcoin BTC $110 273 24h volatility: 0.3% Market cap: $2.20 T Vol. 24h: $54.90 B network has seen many interesting developments following Donald Trump‘s presidential election victory in November 2024. One of these developments hinges on Bitcoin mining difficulty, which recently hit a new historical peak of 110 trillion.
This clearly shows that Bitcoin miners are seeing a very high activity level. On Sunday, January 12, the Bitcoin mining difficulty surged by 0.61%, hitting a new all-time high of 110.45 trillion at block height 878,976.
Data Insights into Bitcoin Mining Difficulty
With the surge in Bitcoin mining difficulty, miners face increased pressure to maintain profitability. Thus, with more demand for computational power, the mining costs will also increase. Following the Bitcoin halving event in April 2024 and a 50% drop in mining rewards, some Bitcoin miners with outdated equipment have moved out of Business.
Likewise, small miners started to unplug from the network after the halving event, leading to a 15% drop in the hashrate. The recent increase in Bitcoin’s difficulty by 0.61% is important for its security and decentralized nature. More miners are now competing for rewards, making the network more secure and less vulnerable to attacks.
Notably, this change also shows that the Bitcoin network is healthy, as more resources are being used for mining. Meanwhile, in about 14 days, analysts expect the next difficulty adjustment to increase by 0.76%. If this forecast plays out as imagined, it will raise the Bitcoin mining difficulty to 111.29 trillion.
Intriguingly, this change shows that more people want to mine Bitcoin and that there is more investment in mining resources. Recall that the BTC mining difficulty hit 101.65 trillion in November 2024. This surge followed the 23rd difficulty adjustment for the year 2024.
Current Bitcoin Outlook
Notably, Bitcoin price hovers around the $91,000 benchmark amid a sustained selloff. The coin has continued to nosedive, atop a 3.33% slump in the past 24 hours per data from CoinMarketCap. Despite this sell-off, the growth of the key network metrics shows general health that may attract investors in the future.
Its hashrate, the royal computational power of the network, also reached new heights. On a seven-day moving average, BTC hashrate currently stands at approximately 920 exahashes per second (EH/s).
A higher hashrate generally enhances network security but also raises the difficulty of mining. It results in increased operational demands for mining companies. Consequently, Bitcoin miners might need to invest in more advanced and energy-efficient equipment to maintain their competitive edge.
Bitcoin bull runs are closely linked to rising miner revenue; according to Glassnode data 2024, the total dollar mining revenue, based on a 7-day moving average (7-DMA) surpassed $35 million. This reflected an increase of over $10 million since the lows observed in September. 2024.
However, since the halving in April, the BTC mining revenue has stayed below the 365-simple moving average (SMA), around $40 million. Historically, once the total miner revenue surges past the 365-SMA, it might coincide with a Bitcoin bull run.
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