Data from on-chain monitoring resources BTC.com confirms that Bitcoin’s network difficulty hit a record high on August 31st.
Bitcoin seals its biggest difficulty jump since the start of 2022
Both difficulty and hashrate are rising, reflecting miners’ belief in the long-term profitability of participating in the network. It also suggests that the mining sector is seeing diminishing returns relative to costs in the short term.
The 9.26% increase in difficulty from the August 31st auto-recalibration is now at an all-time high. Competition among miners remains healthy.
By the way, the last time the difficulty increased suddenly was in January (9.32%), and before that it was August 2021 (13.24%).
According to BTC.com, the hash rate is now averaging 221 exahash per second (EH/s), down from the all-time high average reading of 223 EH/s recorded just before the Terra LUNA implosion in May. A little far away.
Bitcoin (Bitcoin) Fundamentals provide a “welcome upside,” research shows, which breaks out of a traditional bear market.
“Personally, I think we will see a new seasonal trend similar to what we saw in China as hashrate increases out of the US. It helps, and colder months lead to higher hashrates.” Macro analyst Jason Dean I have written Some of Twitter’s reactions to the difficulty recalibration.
Bitcoin is ‘barely holding up’
The numbers provide a welcome contrast to the troubled spot market and the bleak forecast for the rest of 2022.
BTC/USD is set to drop almost 13% at the end of August, and on-chain analytics firm Glassnode said a recovery in fundamentals would be a good antidote to an otherwise tough environment.
“It is still possible that Bitcoin is in a trough forming range, historically similar to all past bear markets,” it concluded in its regular newsletter update.The week on chain’ will be released on August 30th and is titled ‘Bitcoin Barely Hanging On’.
“However, bitcoin’s price has barely held up, and the rise in fundamentals is a welcome change.”
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