Bitcoin fell below the $26,000 level on Wednesday, extending monthly losses to nearly 15%, but the leading crypto-asset has never been harder to mine.
Despite the massive drop in price, bitcoin’s network fundamentals have largely avoided following the same trajectory. In fact, according to the latest data from Coinwarz, bitcoin’s mining difficulty has reached an all-time high of 55.62 trillion hashes.
- The data shows that the next difficulty adjustment is expected to take place in September, which will see bitcoin mining difficulty increase from 55.62 T to 62.61 T, which will take place at block 1,879. However, the thing to note is that this number can change a lot in the coming 10 days.
- In addition to difficulty, the network hash rate has also not been reactive to the price of bitcoin, which is facing significant downside pressure following last week’s bearish sentiment.
- The hash rate was found at 402.43 EH/s, which is only 13% lower than the recently established 465 EH/s.
- The bullish trend can be attributed to the fact that more mining rigs have been deployed this year following the halving of 2022.
- Over the past year, the cost of bitcoin mining rigs has dropped to almost all-time lows.
- This decline in profitability prompted miners to take advantage of the situation, and strategically prepare themselves ahead of the upcoming halving event in order to maintain their competitive edge.
- Furthermore, bitcoin mining stocks are also up more than 200% YTD. For example, Cipher Mining (CIFR) is up 389%, while Riot Blockchain (RIOT) and Marathon (MARA) shares are up 228% during the same period.
Special Offer (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.