$ 19,544.52
$ 1,318.46
$ 1.00
$ 0.427866
$ 0.462487
$ 1.00
$ 0.000314

Bitcoin Fundamentals Deviate From Price Drop as Mining Difficulty Rises

Atis. Sh
The Price of Bitcoin Drops as Mining Difficulty Rises

The rise in difficulty levels reflects the miners’ belief in long-term profitability. In the analysis of BTC prices, the price of Bitcoin (BTC) fell to six-month lows this week. Despite this, the network is now more robust than ever, with the mining difficulty reaching a new all-time high.

Following more statistics, as shown by Glassnode and, the Bitcoin network difficulty has reached a new high record as of Friday.

For The First time, The Level of Difficulty Surpasses 26 Trillion

One of the most significant basics of Bitcoin network components is the difficulty. In simple words, the mining difficulty reflects the amount of effort miners require to solve the equations. The solving of these equations is necessary to execute transactions on the blockchain. 

One can ask about the measurement of the difficulty levels. There is a proportional rapport between the mining effort and the participation of miners. The greater the level of competition, the greater the difficulty. As a result of this, the effect that mining has in this industry is its stability despite external influences. These external elements may include public opinion, market prices, and unexpected events.

Following the decrease of difficulty in the middle of 2021, it took a while for it to come back stronger. Accordingly, the most recent readjustment raised difficulty by 9.32% in comparison to the previous level. With this in mind, it surpassed the value of 26 trillion into the new territory. 

Diving into the difficulty analyses, the cryptocurrency journalist Colin Wu stated that the current difficulty increase reached the highest rate in the latest six months. According to the statistics, it is confirmed that the newest adjustment of almost 10% occurred in late August.

Bitcoin Price Drop Does Not Affect Miners

As the hash rate got higher, so did the difficulty, which was naturally following this rise. This has resulted in breaking records all year.

A good understanding of the hash rate is crucial. The hash rate measures the amount of processing power allocated to the blockchain by miners. According to MiningPoolStats, the current hash rate is now at 192 exahashes per second (EH/s), after temporarily reaching 218 EH/s on the 10th of January. However, the old cliche of “price follows the hash rate” is fading away as the fundamentals shift in the other way around the current price.

In light of the increasing hash rate, it is reasonable to assume that miners’ confidence in the profitability of their activity will continue to rise over time. According to several calculations completed last week, their break-even threshold is around $34,000.

Also read:

Survey Results Are In: 61% of Americans to Buy Crypto in 2022

El Salvador Seeks Low-Interest Loans Subsidized by Bitcoin

Dogecoin Community Calls on McDonald’s To Accept DOGE

Gensler Says SEC 2022 Agenda Will Include Regulating Crypto Exchanges

Also read:

Related News

Kim Kardashian Charged By SEC For Unlawfully Touting Crypto Security

The Securities and Exchange Commission has charged Kim Kardashian for promoting a crypto asset security sold and offered by EthereumMax on social media, resulting in a scam. This is without reporting the compensation she got for a promotion. In exchange for dropping the accusations, paying around $1.26 million in fines, forfeiture, and interest, going along with the investigations, the star of Keeping Up With The Kardashians, Kim, agreed to settle

Read More »
The action came after Binance's expansion in several nations in 2022, such as Dubai, France, Spain, and Italy, as the platform aims to expand its operations and boost global cryptocurrency usage.

Binance to Offer its Services to New Zealand

As per a blog post published on September 30, the biggest crypto exchange by trading volume, Binance, is now reportedly registered in New Zealand and opened a regional office there called Binance New Zealand as part of its effort for worldwide expansion. On September 10, Binance filed as a financial service provider with the Ministry of Business, Innovation, and Employment in New Zealand. This allowed the business to provide a

Read More »
With the new exchange-traded fund (ETF), European users will have access to the blockchain market. A metaverse-focused ETF may also be in the works, according to numerous sources.

BlackRock Introduces New ETF Targeting European Clients

Blackrock, the biggest asset manager in the world, has revealed the introduction of a fresh ETF. With the new exchange-traded fund (ETF), European users will have access to the blockchain market. A metaverse-focused ETF may also be in the works, according to numerous sources. The iShares Blockchain Technology UCITS ETF, a new Blackrock ETF, was introduced on September 27. Blackrock provided more information about the ETF, claiming that 75% of

Read More »

My Coins

$ 19,544.522.04%
$ 1,318.462.14%
$ 1.000.12%
usd-coinUSD Coin
$ 1.000.06%

We inform and educate people about Cryptocurrencies and Blockchain technology.

© Copyright 2021, All Rights Reserved,
Crypto Academy


Contact Us

For any question conatct us through:

[email protected]

Disclaimer: All information and materials on this website are for educational purposes only. does not provide any form of financial advice. Cryptocurrencies are highly volatile, therefore any form of investing carries a high level of risk to your capital. It is recommended that you seek professional advice prior to implementing any investment or financial plan.

We do not ask you for your Cryptocurrency / We do not hold your Coins / We do not ask for Private Keys / Be aware of scammers and imposters.

Contact us only through: [email protected]