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The bitcoin mining difficulty has once again clocked a new all-time high. This adjustment is one of the largest positive adjustments so far for the year, and with the new ATH comes a brand new set of implications for the digital asset.
Bitcoin Mining Difficulty Reaches New High
On Sunday, January 29, the bitcoin mining difficulty underwent a 4.68% adjustment that saw the difficulty shoot up. It took place at block 774,308 and the difficulty is now currently sitting at 39.35 terahash per second on a seven-day basis.
This adjustment puts the difficulty above its previous high of 37.59 TH/s which was recorded on January 16th. The next difficulty adjustment is expected to take place on February 11. Forecasts for the next adjustment are set at an upward 3.63% which would put the difficulty at a new all-time high.
BTC difficulty adjusts to 39.35T | Source: CoinWarz
Over the last 30 days alone, the bitcoin mining difficulty is already up more than 11.27% as 2023 starts off on a high note. It also shows that more miners are plugging back into the network, hence the high adjustments being recorded.
Nevertheless, the competition is good for the digital asset as not only do more miners on the network help to secure it, but more rigs coming online means a high level of demand for the digital asset. BTC is now much harder to mine so miners will have to increase their hashrate to be able to efficiently mine the same volume as they used to.
Will This Affect The BTC Price?
Over the last day, the bitcoin price has already seen a drawdown following the difficulty adjustment. This comes as no surprise as there was ample resistance at the $24,000 level and the adjustment only helped to put more selling pressure on the coin.
However, the digital asset continues to hold above the $23,000 price level which is great because this ensures that BTC remains above its 100-day and 200-day moving averages. As long as both of these levels hold, the price of BTC still remains firmly in a bullish trend.
As long as the price of BTC is also on the high side, miners will not be putting as much selling pressure on the market. They will have to sell fewer tokens in order to keep their operations going, as well as be able to hold a higher percentage of their mined coins. In the end, there is not much supporting evidence that the mini-bull rally is over but that remains to be seen.
At the time of writing, BTC is changing hands at a price of $23,356, up 1.58% in the last seven days.
BTC price falls to $23,200 in face of higher mining difficulty | Source: BTCUSD on TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from CoinDesk, chart from TradingView.com
