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The Bitcoin mining difficulty is skyrocketing despite the collapse of the BTC price.

Fri 15 Mar 2024 ▪ 3 min of reading ▪ by Fenelon L.
Getting informed Event

Yesterday, the Bitcoin mining difficulty reached a record level of 83.95 trillion hashes, reflecting increased competition among miners. Paradoxically, on the same day, the price of BTC experienced a massive drop after hitting an all-time high of $73,835.

Un mineur cherche du bitcoin

Continuously Rising Mining Difficulty Despite Price Volatility

The Bitcoin mining difficulty is steadily climbing, reflecting the continuous influx of new miners despite a highly volatile market. March 14 marked a new peak at 83.95 trillion hashes, up from 79.35 trillion a month earlier.

This record level indicates massive investments in computing power and energy by miners. Bitcoin’s algorithm automatically adjusts the difficulty approximately every 2 weeks (or every 2016 blocks) to maintain a stable block mining time of 10 minutes, regardless of the number of miners.

The adjustment to 83.95 trillion hashes represents a rate of 613.94 exahash per second (EH/s), up from 602.14 EH/s at the previous adjustment. This steady increase underlines the high level of confidence and commitment miners have in the Bitcoin network over the long term.

However, the timing raises questions. Why such a rush to mine even as the price of BTC and the overall crypto market are undergoing severe correction? Is it a bet on a future price recovery, or a headlong rush despite bearish signals and the approaching Halving?

Bitcoin Facing Conflicting Winds

March 14 was a paradoxical day for Bitcoin. Its price first reached a new all-time high of $73,835, sparking hopes of a soar towards $100,000. However, the trend quickly reversed, plunging to $67,501 at the time of writing this article.

This extreme volatility spared almost no cryptocurrency. Ethereum, Solana, BNB… The major altcoins followed the BTC’s sawtooth trend, with euphoric peaks quickly erased by severe corrections.

The plummet in Bitcoin’s price led to the liquidation of nearly 200,000 traders within 24 hours. A stark reminder of the risks inherent to investing in crypto, including for BTC despite its status as a safe haven.

A retreat below $70,000 is a concerning signal for analysts. Many technical supports have been broken, and the fear and greed index is near its lowest level. Will the downtrend last, or will the market find new momentum? Time will tell.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.