Bitcoin mining difficulty hit a new high of 90.67 trillion on July 31, reflecting increased network complexity and growing hashrate.
The Bitcoin hashrate reached 641.2 EH/s, signaling higher participation in mining due to more efficient hardware and profitability.
Miner outflows have decreased, with major miners accumulating BTC, indicating confidence in Bitcoin's long-term value.
Bitcoin mining difficulty has surged to a high level, reaching 90.67 trillion as of July 31, 2024. This marks a 10.5% increase, setting a new record in the process. The surge in difficulty highlights the increasing complexity of the Bitcoin network, driven largely by the growing hashrate. The hashrate, which measures the computational power used to mine Bitcoin, has also hit a new peak, reaching 641.2 exahashes per second (EH/s).
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Hashrate and Mining Difficulty
The Bitcoin network has seen a steady rise in hashrate over the past year, despite periodic fluctuations. Notably, the hashrate has exhibited a consistent upward trend, with intervals of rapid increases followed by brief plateaus or slight declines.
The growing hashrate is a clear indication of heightened participation and investment in Bitcoin mining. This is likely due to the introduction of more efficient mining hardware and an increase in the profitability of Bitcoin mining.
In response to the rising hashrate, the network's mining difficulty has also increased. The difficulty adjusts approximately every two weeks to maintain a consistent block production time. The recent increase to 90.67 trillion highlights the network's automatic response to the higher hashrate, ensuring that blocks continue to be mined at a steady rate.
Correlation Between Hashrate and Difficulty
The correlation between the increasing hashrate and the subsequent adjustments in mining difficulty is evident. Higher hashrate signals more computational power in the network, leading to an automatic increase in difficulty.
This mechanism is crucial for maintaining the stability and security of the Bitcoin network. Despite the rising difficulty, miners continue to invest in the network, indicating their confidence in long-term profitability.
Miner Behavior and Bitcoin Holdings
Recent data from CryptoQuant analysts show a decrease in the amount of Bitcoin being transferred from miners' wallets. Notably, the daily outflow of Bitcoin from miners dropped from 10,000-20,000 BTC in early March to 5,000-10,000 BTC by July.
This reduction in outflows suggests that miners are holding onto their Bitcoin, likely in anticipation of higher future prices. Additionally, the total Bitcoin balance held by major miners has increased to 65,000 BTC, up from 61,000 BTC at the beginning of 2024. This accumulation behavior further supports the idea that miners are betting on the long-term value of Bitcoin.
The next difficulty adjustment is expected in approximately 14 days, with analysts predicting a slight increase to 90.70 trillion. The ongoing rise in both mining difficulty and hashrate indicates a strong belief in the continued growth and security of the Bitcoin network.
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