Bitcoin Mining Difficulty Hits All-Time High, But BTC Price Drops to Local Lows

Bitcoin network difficulty has reached its highest-ever level. However, asset prices are sliding following a regulatory crackdown in the United States.

BTC mining difficulty is at peak levels which means it is now harder than ever to secure the next block.

Miners must perform 39 trillion hashes (39T) to find the next block. Difficulty is often referred to as a measure of competition between Bitcoin miners, or the computational power required for another block to be produced.

According to BitInfoCharts, mining difficulty has increased by 47% since the same time last year. This has put a lot more pressure on miners.

Bitcoin Mining Metrics Latest

Additionally, Bitcoin mining hash rates are also near their peak levels. Bitinfocharts currently reports a hash rate of 300 EH/s (exahashes per second), just shy of its late January peak of 316 EH/s.

Furthermore, hash rates have increased by 50% since February 2022. This is good news for network security but bad news for BTC miners.

As a result of these increasing metrics, mining profitability has tanked to multi-year lows. Since Feb. 2022, mining profitability has tanked 66% to current levels of around $0.073 dollars per day per terahash per second.

Furthermore, Hashrate Index refers to this metric as “hashprice.” The analytics platform reports that hash prices hit an all-time low of $0.055 in late November 2022. During the bull market peak in late 2021, they were as high as $0.40.

BTC Hash Price | Hashrate Index

Bitcoin miners are currently facing a triple whammy of low BTC prices, high difficulty and hash rate, and increasing energy costs.

Bitcoin mining researcher Jaran Mellerud observed that some public mining firms have spent more than half of their revenues on administration. Those that have been more frugal in this area are more likely to weather the storm.

On Feb. 9, mining firm CleanSpark released its fiscal Q1 earnings report. While revenue fell, the company was confident it would keep expanding with more mergers and acquisitions this year.

Furthermore, Hut 8 announced a merger with US Bitcoin Corp earlier this week.

Price Outlook

Bitcoin prices have been battered today, putting even more pressure on miners. The slump came as the SEC cracked down on Kraken’s crypto-staking services.

BTC had dropped almost 4% over the past 12 hours in a fall to $21,870 at the time of press. Additionally, the asset has now lost 7% over the past week as the bears resume pressurizing markets.

BTC/USD 1 week – BeInCrypto


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

Bookmark (0)
ClosePlease loginn

Related Posts

Bitcoin: The Best Performing Asset Class in Q1 2023

Bitcoin set for its best trading quarter in nearly 2-years.
The top cryptocurrency vastly outpaces stocks performance.
BTC is well placed for more gains in Q2 2023.

Bookmark (0)
ClosePlease loginn

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

USDC supply declined by $10 billion in March following its exposure to the US banking crisis.
However, the stablecoin use on smart contracts reached a six-month high of 42.08%.
Tether USDT is now the dominant stablecoin, accounting for over 60% of the market.

Bookmark (0)
ClosePlease loginn

Bittrex Quits US, Cites Unfavorable Regulatory Environment

Crypto exchange Bittrex said it was leaving the United States because of the regulatory environment.
The crypto company had had previous skirmishes with financial regulator in the country.
Crypto stakeholders have warned that the US regulatory landscape would force many firms out of the country.

Bookmark (0)
ClosePlease loginn

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.

Bookmark (0)
ClosePlease loginn

Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

The plaintiff’s brought up Musk’s Saturday Night Live appearance in 2021, where he portrayed “a fictitious financial expert” and called Dogecoin “a hustle,” resulting in a steep price decline minutes later.

Bookmark (0)
ClosePlease loginn

Here’s how the crypto industry is using artificial intelligence

The rise of artificial intelligence, though in its early stages, has found use cases in crypto through countless projects.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *