Bitcoin mining difficulty is expected to reach an all-time high in less than a day, which will lead to a reduction in already shrinking miner profit margins.
Bitcoin mining difficulty, which measures the difficulty of obtaining rewards during the mining process, is expected to increase by 9% in about fifteen hours, according to data from BTC.com, a mining pool. That would take it to 26.58T – higher than its previous all-time high of 25.05T set in mid-May 2021.
After that high, the difficulty saw a series of significant declines, which had taken it all the way to 13.67T. It has since recovered, hovering around 24T since November, and it looks like it will finally cross the previously set ceiling.
The hashrate, or the computing power of the network, is also on the rise. Since the previous difficulty adjustment two weeks ago, the 7-day average hash rate has increased by more than 10%, according to data from BitInfoCharts.com.
The profitability of Bitcoin mining, on the other hand, fell as the price corrected lower.
The mining difficulty is adjusted approximately every two weeks (or more precisely, every 2016 blocks) to maintain the normal block time of 10 minutes. On January 19, the 7-day average block creation time was 8.84 minutes.
According to data from ByteTreeover the past week, miners have spent more of their newly generated BTC, compared to what they were holding.
BTC is currently trading around 42,000 USD, it is up 1% in one day and down 4% in one week.
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