Bitcoin mining difficulty increased by 9.9% to a new all-time high over the last two weeks, suggesting that more miners are coming online to take advantage of the increase in BTC price.
According to data from BTC.com, the mining difficulty rose to 43.05 trillion during the early hours of Feb. 25. Mining difficulty refers to the complexity of the puzzles miners must solve to create new blocks on the Bitcoin network.
Meanwhile, this is the third time Bitcoin’s mining difficulty has increased since the start of the year and represents a new all-time high. However, the next mining difficulty is predicted to drop by 0.78% to 42.72 trillion, according to available data.
Mining difficulty changes every 14 days or 2,016 blocks and usually depends on the hashrate, i.e., the number of miners on the network.
Bitcoin Hashrate Over 300 EH/s
In the past few weeks, BTC hashrate has also been on the ascension. According to BTC.com, the hashrate averaged 308.09 EH/s and also exceeded 330 EH/s during the week.
However, Bitcoin hashrate has dropped to 295.77 EH/s at the time of writing.
BTC’s price increase, alongside other favorable factors, means miners are finally turning profitable after a dastardly 2022. Their increased profitability has swayed the decision of many of them to return online. Besides that, public miners have also seen a resurgence in the value of their battered shares.
BTC Maintains $23k
Bitcoin is trading at $23,000 despite dropping by 3% in the last 24 hours. The decline is due to the recent consumer price index showing that inflation rose in January. There is a possibility that the Fed might double down on increasing interest rates in order to bring inflation under control fully.
Meanwhile, BTC’s network activities has risen to new highs following the growth of Ordinals NFT. BeinCrypto previously reported that the NFTs have caused transaction fees on the Bitcoin network to reach the highest point since November 2022. Besides that, a new layer2 network, Stacks Network, has also enjoyed renewed attention from industry players due to the NFTs.
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