The current Bitcoin market situation highlights growing network fundamentals, particularly in its mining difficulty.
Rise in Mining Difficulty
Bitcoin mining difficulty recently reached a record high of 95.67 trillion. This metric shows how difficult it is for miners to produce new blocks. The difficulty is self-adjusting every 2,016 blocks (approximately two weeks) to ensure the stable production of new BTC.
Impact on the Network
The increase in difficulty indicates more miners are joining the network, which makes it more robust and better-performing. Since July 2024, the difficulty has increased by 20%, and it's up by 55% since last October.
Hash Rate and Bitcoin Price Changes
Bitcoin's hash rate has also been rising, hitting a new high of over 900 EH/s, though it has decreased slightly to 730 EH/s. This marks a 70% year-over-year increase. Meanwhile, BTC's price reached a peak of $69,500 but then retraced to $66,500.
The rise in mining difficulty and hash rate reflects the strengthening of the Bitcoin network. These developments occur amid significant price fluctuations, underscoring the cryptocurrency's resilience.