The bitcoin network bitcoin/difficulty-chart” rel=”nofollow noopener” target=”_blank”>recently underwent a difficulty adjustment, leading to a further increase in mining difficulty. The adjustment also marked the sixth consecutive increase in btc mining difficulty as it hit a record high. If this becomes a trend, it could affect the price of the flagship cryptocurrency, bitcoin.
The Latest bitcoin Difficulty Adjustment
The latest adjustment took place at block 818,496, with the current bitcoin mining difficulty at an all-time high of 67.96T. The network saw a 3.40% increase in mining difficulty in the last 24 hours alone. This follows a growing trend in the bitcoin mining average difficulty dating back to the last 90 days.
The network has seen an overall increase of 22.18% in the last 90 days. In the last 30 days it has experienced an increase of 11.35%, while in the last 7 days it has been 5.07%.
bitcoin difficulty basically measures the amount of computing power needed to mine the next bitcoin block. These adjustments are usually made to keep block generation in line with the set block time of 10 minutes.
The increase in the mining difficulty It typically occurs as more hash power is added to the network to ensure blocking times are consistent. Whenever this happens, miners are also known to get smaller rewards as there is an increase in total network hash rate. Basically, this helps the network function optimally and prevents any form of inflation in terms of miner rewards.
<img decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/ujYJieaz/" alt="Tradingview.com bitcoin Price Chart (Mining Difficulty Adjustment)” width=”2650″ height=”1530″/>
btc price begins another upward move | Source: BTCUSD on Tradingview.com
How this affects the price of bitcoin
Interestingly, there appears to be a correlation between bitcoin-price-and-difficulty” rel=”nofollow noopener” target=”_blank”>The price of btc and its difficulty. The price of bitcoin has continued to rise along with the increase in network difficulty. In line with this, there is a projection that the btc price could reach $40,000 if the network difficulty increased to 72 T. This correlation could arise from the level of activity on the network.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-266550 aligncenter" src="https://bitcoinist.com/wp-content/uploads/2023/11/bitcoin-40000.png?w=512&resize=512%2C290″ alt=”bitcoin $40,000″ width=”512″ height=”290″ data-recalc-dims=”1″/>
Source: bitcoin-price-and-difficulty" rel="nofollow noopener" target="_blank">Hashrateindex
More liquidity (causing an increase in price) is flowing into the bitcoin ecosystem, and more miners They are looking to take advantage of this. This could explain why the network difficulty continues to increase significantly. It is also worth mentioning that the network hashrate has also increased exponentially.
Curiously, daily transaction fees on the network increased recently, bitcoin-fees-soar-above-ethereums/” rel=”nofollow noopener” target=”_blank”>exceeding rates on the ethereum network at some point (a rare phenomenon). All of this potentially indicates that another rally could be on the horizon for the top cryptocurrency.
However, following the correlation between btc price and network difficulty, the path to bitcoin/analyst-sounds-warning-this-might-be-your-last-chance-to-buy-bitcoin-below-40000/” rel=”nofollow noopener” target=”_blank”>$40,000 might not come soon. There is expected to be a decrease in bitcoin mining difficulty in the next adjustment which is estimated to take place on December 10.
At the time of writing, btc is trading at around $37,300, down more than 1% in the last 24 hours according to bitcoin/” rel=”nofollow noopener” target=”_blank”>data from CoinMarketCap.
Featured image from Business Today, chart from Tradingview.com
