Bitcoin difficulty jumps 6% to new peak as miners ignore BTC price dip
Bitcoin difficulty jumps 6% to new peak as miners ignore BTC price dip

Bitcoin (BTC) network fundamentals are in no mood to follow this week’s bearish BTC price action.

Latest on-chain data confirmed The difficulty has reached an all-time high, and the hash rate is not far behind.

Bitcoin mining difficulty downturn ends

While BTC/USD fell 10% last week, Bitcoin miners seem to be taking the drop in price in stride.

This was reinforced during the network event on August 22, with the latest bi-weekly auto-adjusted difficulty increase of 6.17%.

Not only was that enough to push the difficulty to new highs, but it also marked Bitcoin’s sixth-largest difficulty increase in 2023, according to monitoring resource BTC.com.

Difficulty reflects miner competition and Bitcoin network security, and its upward trajectory suggests that miners are not yet in trouble when it comes to profitability.

The next automatic adjustment is expected to continue this trend, with the difficulty exceeding 56 trillion for the first time.

An overview of the basics of the Bitcoin network (screenshots). Source: BTC.com

Hash Rate Shows ‘High Confidence’ in Bitcoin

A similar story concerns hash rate — the estimated hash deployment of miners to the Bitcoin blockchain.

Related: Bitcoin Analyst Expects ‘V-Shaped’ BTC Price Rally as RSI Hits 5-Year Low

While impossible to calculate exactly, depending on the source, the hash rate has challenged existing all-time highs of over 400 exahashes per second (EH/s).

Responding to the data, MAC_D, a contributor to on-chain analytics platform CryptoQuant, mentioned that network participants have a “high level of trust” in the security and reliability of Bitcoin and the largest altcoin, Ether (ETH).

“Recently, the prices of BTC and ETH have dropped by -10%. However, the security and reliability of the network has improved. First, the BTC hash rate (SMA 14) shows higher numbers during the decline, which shows that miners More active in BTC mining. Second, the ETH pledge rate (%) shows that despite the price drop, more ETH is still being pledged.” wrote In the Quicktake market update on August 22nd.

“This means that investors have confidence in the security and reliability of the BTC and ETH networks. Although the intrinsic value of the two assets has increased, the price has fallen, which means that they are undervalued and can now be considered for active asset accumulation. “

Bitcoin estimated hash rate chart. Source: Glassnode

Separate data from on-chain analytics companies glass node Showing little noticeable change in the amount of BTC held by mining entities.

As of August 22, there were just over 1.83 million bitcoins, a steady increase of 0.08% since the beginning of the month.

Bitcoin miners BTC balance chart. Source: Glassnode

This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.

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