Bitcoin’s mining difficulty hit a new record of 101.65 trillion on November 5, reflecting heightened miner activity and a 40% increase in mining difficulty for 2024.
Just ahead of the US election results on November 5, the Bitcoin network is seeing some interesting developments as the BTC mining difficulty hits a new historic peak while surpassing 100 trillion earlier today.
This clearly shows that Bitcoin miners are seeing a very high level of activity. On Tuesday, November 5, the Bitcoin mining difficulty surged by 6.24% hitting a new all-time high of 101.65 trillion at block height 868,896. This happens following the 23rd difficulty adjustment for this year 2024 so far. As a result, the total difficulty has surged by a staggering 40% this year.
Furthermore, following the surge in Bitcoin price BTC $94 703 24h volatility: 0.3% Market cap: $1.88 T Vol. 24h: $23.26 B , its hashrate, the total computational power of the network, has reached new heights. On a seven-day moving average, BTC hashrate currently stands at approximately 730 exahashes per second (EH/s).
A higher hashrate generally enhances network security but also raises the difficulty of mining, resulting in increased operational demands for mining companies. Consequently, Bitcoin miners are compelled to invest in more advanced and energy-efficient equipment to maintain their competitive edge.
As per the Q3 report from CoinShares, the average cost of producing one Bitcoin using public mining firms had reached $49,500. Despite Bitcoin’s market price hovering around $69,000, many miners continue to find their operations profitable at current levels.
Bitcoin Price Action and US Elections
The Bitcoin price hasn’t shown any movement in the last two hours and is flirting around the $69,000 level as investors wait on the sidelines for the final outcome of the US Election. As per the prediction market data from Polymarket, Doland Trump has a 60% odds of winning.
In a Nov. 5 market report titled “Calm Before the Storm?” Bitfinex analysts noted that implied volatility for Bitcoin (BTC) options is currently in the low 40s, indicating limited market confidence in major price shifts.
“Despite a general expectation for heightened volatility leading up to the day of the US elections on 5th November, many market participants seem hesitant to take action, adopting a wait-and-see approach,” said Bitfinex analysts.
On the other hand, the Coinglass data also shows that the Bitcoin open interest has dropped significantly. It shows that traders are closing out large volumes of both – long and short positions.
On Nov. 4, Keith Alan, co-founder of trading platform Material Indicators, shared his outlook suggesting that the upcoming US presidential election could suppress Bitcoin’s price action for two months. Bitcoin is likely to recover “above the macro trend” in 2025, he added.
Facts:
☑️ R/S Flip at $69k has been invalidated
☑️ Trend Precognition ⬇️ #TradingSignals on the $BTC W chart are gaining strength
☑️ Technical Support at the 21-Day MA has been lost
☑️ @Polymarket Narrative Traders are getting rekt
☑️ Technical Support at the 50-Day MA is coming… pic.twitter.com/Fs0VSqgQ9h— Keith Alan (@KAProductions) November 4, 2024
Alan predicts that a Trump victory would trigger a “knee-jerk” reaction in BTC/USD, while a Democratic win would likely have the opposite effect. “Bitcoin will not reach a new all-time high before the votes are counted,” he stated, summarizing one of four key “assumptions” regarding Bitcoin’s short-term price behavior.
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