Bitcoin's mining difficulty has surged to a record 127.6 trillion this week, indicating a rise in network computational power. A decrease in difficulty is expected in the coming weeks.
High Bitcoin Mining Difficulty
This week, Bitcoin's mining difficulty reached a record 127.6 trillion. However, a downward adjustment is forecasted on August 9, with a 3% decline to approximately 123.7 trillion. This adjustment is linked to an increase in average block time, which now stands at 10 minutes and 20 seconds, slightly above the target of 10 minutes.
Price Decline Amid Geopolitical Tensions
As tensions escalate between the U.S. and Russia, Bitcoin's price fell approximately 4% over the past week. Increased selling pressure pushed prices down, though Bitcoin has now entered a crucial support zone that may provide short-term stability.
Market Developments and Long-term Holders' Influence
Experts suggest that Bitcoin's market structure remains bullish as long-term holders show strong conviction despite recent price fluctuations. The NUPL metric for long-term holders stays above 0.5, indicating they hold substantial unrealized gains. Meanwhile, short-term holders may sell during upward price movements, which could create pressure on the market.
Bitcoin's mining difficulty continues to rise, and despite the pressure from falling prices, long-term holders provide market support. Global market developments remain a key factor for Bitcoin's future.
