The spike in Bitcoin mining difficulty suggests that BTC miners are back in action after a strong summer when mining activity dropped significantly.
In one of the biggest difficulty adjustments since January 2022, Bitcoin mining difficulty increased by 9.26% in the last update. BTC.com released the latest data on this.
The bitcoin mining difficulty fix occurs every two weeks and is the third positive in a row. Since August 18, the Bitcoin network hash rate has also increased by 12%.
Bitcoin mining difficulty refers to the complexity of solving mathematical algorithms and adding new blocks to the Bitcoin blockchain. At this point, miners repeatedly try to find hashes below the specified level. Miners who “find” the hash are rewarded for the next block of transactions.
Bitcoin and the broader crypto market entered a major correction earlier this year. Results of. Miners have to sell their BTC to cover operating costs. Also, during the summer, some miners, particularly in Texas, chose to close their facilities in response to high power demand due to the extreme heat.
As a result, the mining difficulty has decreased significantly during this period. To sync with the network hashrate, difficulty adjustments are made every 2016 block (approximately every two weeks).
Bitcoin Miner Selling Continues
Bitcoin miners continued to sell during the recent price rally in early August. Bitcoin miners sold nearly 6,000 bitcoins in two weeks.
Since July 2022, Bitcoin miners have been under pressure from falling token prices and rising energy costs. Selling pressure from bitcoin miners continues as their overall industry margin has dropped to 50% from a high of 80%. However, some bitcoin miners remain optimistic about the future of bitcoin mining.
As the Bitcoin price came under pressure, small miners were left out of the game. On the other hand, big miners are increasing their market presence by adding more mining machines to their arsenal.