Bitcoin: an expected ATH for mining difficulty

Bitcoin mining difficulty is expected to reach an all-time high in less than a day, leading to a squeeze on miners’ profit margins, which are already shrinking.

Source: AdobeStock / artiemedvedev

Bitcoin mining difficulty, which measures the difficulty of earning rewards during the mining process, is expected to increase by 9% in about fifteen hours, according to data from BTC.com, a mining pool. That would take it to 26.58T, higher than its previous all-time high of 25.05T set in mid-May 2021.

After that high, the difficulty saw a series of significant drops, taking it down to 13.67T. It has since recovered, hovering around 24T since November, and looks set to finally cross the previously set limit.

The hashrate, or computing power of the network, is also on the rise. Since the previous difficulty adjustment two weeks ago, the 7-day average hash rate has increased by more than 10%, according to data from BitInfoCharts.com.

Bitcoin mining profitability, on the other hand, fell as the price corrected lower.

7-day moving average. Source: bitinfocharts.com

Mining difficulty adjusts approximately every two weeks (or more precisely, every 2016 blocks) to maintain the normal block time of 10 minutes. On January 19, the 7-day average block creation time was 8.84 minutes.

According to data from ByteTree, over the past week, miners spent more of their newly generated BTC, compared to what they had.

Source: terminal.bytetree.com

BTC is currently trading around $42,000, up 1% in a day and down 4% in a week.

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