Bitcoin’s volatility in crypto markets has led to unexpected heights this year. The crypto winter in the year’s first half gave the leading crypto asset a blow off its balance. As a result, BTC’s price fell to over half its value as of November 2021.
The Bitcoin hash rate rose despite price fluctuations since mid-July’s drop. According to a report from recently, the BTC’s hash rate (ATH) has reached a new record high. This was after the latest increase in mining difficulty.
It is important because it gives information about the strength and stability of the Bitcoin network, based on BTC mining. It also correlates active miners with their computational mining equipment that is working on the network.
People often create an association between the cryptocurrency’s price and its hashrate for future movements. There could be unexpected twists, as we have seen with Bitcoin in recent weeks.
Hash Rate Gets Higher Amid Price Struggle
Over the last few months, BTC’s price has been fighting for its position. In July, it could not maintain its $20K level. During the time when the market was in trouble, however, Bitcoin’s hash rate has been higher.
The regulation authorities of several countries often influence the mining industry during summer months. Due to the increased energy demand, the authorities may prohibit local miners. The BTC hash rate is expected to drop. The record for this year’s season indicated a drop to 170 Ehash/s in mid-July from its June value of 250 Ehash/s.
However, summer is fading and the metric is making a comeback. In just a few weeks, the hashrate has risen by over 50% to 265 Ehash/s, a record high.
Bitcoin Mining: Trending Difficulty
BTC mining difficulty adjusts every 2,016 blocks (two week). To maintain the correct stance of the network, this readjustment must be done. The Bitcoin blockchain can produce a block every 10 minutes.
So, mining will not be easy when miners are all connected to one network. It will, however, be much easier to mine when there are fewer miners.
The current mining difficulty stands at 30.98 T. However, the next adjustment will take less than 24 hours. BTC.com data indicates that the metric might be positive once again, with a potential 3% increase.
The mining difficulty was a sign of more readjustments due to many miners going offline in the summer. The trend changed on August 31, to show the largest positive value since January.
Featured image by BBC. Chart from TradingView.com