Bitcoin mining difficulty (September 14) increased sharply, setting a new ATH peak

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2022-09-19 14:17:47

While the hashrate is still very strong, the Bitcoin mining difficulty has seen 4 consecutive increases, despite the BTC price trending downwards.

Bitcoin Mining Difficulty Reaches New All-Time High

On-chain data shows that Bitcoin (BTC) mining difficulty has hit a new high with the latest jump, the second time in the past two weeks.

After the adjustment at dawn on September 14, the difficulty of Bitcoin mining algorithm has continued to increase 3.45% set a new record, surpassing the peak in May 2022. This is the second recent significant increase. On August 31, the difficulty increased by 9.26%.

BTC mining algorithm difficulty can be explained as an automatic mechanism to react to fluctuations in hash rate (mining capacity) on the network. Because the hashrate has continuously peaked recently, the BTC mining difficulty has also increased to ensure that the average block time on the Bitcoin network will always fluctuate around 10 minutes/block.

For the same reason, many miners believe that block generation times will shorten, causing the next Bitcoin halving to arrive earlier than usual. However, because of the difficulty of mining, the next halving will still be around May 2024.

Given the compressed value of Bitcoin, with the recent drop in high CPI numbers and the possibility of bottoming as low as $10,000, profitability is shrinking for miners.

Despite profit concerns, the average hash rate remained above 200 exahash per second at 229.39 EH/s, close to the all-time high of 231 EH/s.

In the last 24 hours, the price of Bitcoin has just plummeted below $ 20,000 after being hit by the news that the US announced August CPI at an inflation rate that did not match expectations.

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