Bitcoin Mining Difficulty Reaches Record High as Revenue Surges, Indicating a Potential Bull Run
The rise in Bitcoin mining difficulty signals a potentially bullish trend as mining revenues increase alongside it.
Bitcoin Mining Difficulty Reaches Record High as Revenue Surges, Indicating a Potential Bull Run
Key Highlights
- Bitcoin mining difficulty has increased by 3.9%, reaching 95.67 terahashes (TH).
- This marks the 13th consecutive positive adjustment for the year 2024.
- The jump in difficulty correlates with a record hashrate, which surpassed 700 EH/s for the first time.
On Tuesday, Bitcoin mining difficulty surged 3.9%, climbing to 95.67T based on data from Glassnode. This increase coincides with an all-time high in network hashrate, pushing past 700 EH/s.
Mining difficulty is an essential metric that indicates the complexity of adding blocks to the blockchain. In 2024, there have been 22 difficulty adjustments, with 13 being marked as positive, resulting in a significant year-to-date increase from 72T to 92T.
Historically, soaring mining difficulty has often preceded bullish trends in Bitcoin prices. Once mining revenue climbs above the 365-day simple moving average, it typically indicates a pending bull run.
Other Indicators of Market Trend
In addition to the increased difficulty, average mining revenues have reached over $35 million over the past week, marking a $10 million increase since September. Comparing these figures shows a strengthening stance among remaining miners, suggesting a consolidation towards more robust operations following the market's adjustments since the last halving in April 2024. Mining revenue continues to be pivotal in dictating market movements as more miners adapt to the evolving cost structures in the industry.
Note: Historically, when total miner revenue increases past the 365-SMA, it's a strong indicator of bullish price action, as seen in past trends.
