Key Points
- Bitcoin mining difficulty reaches an all-time high of 101.65 trillion, indicating increased activity from miners.
- The Bitcoin price remains stable around $69,000 as the US election results are awaited.
Just before the US election results on November 5, the Bitcoin network witnessed a surge in mining difficulty. This surge, surpassing 100 trillion, signifies high levels of activity among Bitcoin miners.
On November 5, the Bitcoin mining difficulty increased by 6.24%, reaching a new high of 101.65 trillion at block height 868,896. This was the 23rd difficulty adjustment for the year 2024, causing the total difficulty to rise by 40% this year.
Increased Hashrate and Mining Costs
Following the surge in Bitcoin price, the total computational power of the network, also known as the hashrate, reached new heights. The seven-day moving average for the BTC hashrate currently stands at approximately 730 exahashes per second (EH/s).
A higher hashrate generally improves network security but also increases the difficulty of mining. This leads to increased operational demands for mining companies, forcing Bitcoin miners to invest in more advanced and energy-efficient equipment.
According to the Q3 report from CoinShares, the average cost of producing one Bitcoin using public mining firms reached $49,500. Despite Bitcoin’s market price hovering around $69,000, many miners still find their operations profitable.
Bitcoin Price and US Elections
The Bitcoin price hasn’t shown any movement in the last two hours and is hovering around the $69,000 level. Investors are waiting on the sidelines for the final outcome of the US Election. Prediction market data from Polymarket suggests Doland Trump has a 60% chance of winning.
In a Nov. 5 market report titled “Calm Before the Storm?” Bitfinex analysts noted that implied volatility for Bitcoin (BTC) options is currently in the low 40s, indicating limited market confidence in major price shifts.
Coinglass data also shows that the Bitcoin open interest has dropped significantly. This suggests that traders are closing out large volumes of both – long and short positions.
Keith Alan, co-founder of trading platform Material Indicators, suggested that the upcoming US presidential election could suppress Bitcoin’s price action for two months. He added that Bitcoin is likely to recover “above the macro trend” in 2025.
Alan predicts that a Trump victory would trigger a “knee-jerk” reaction in BTC/USD, while a Democratic win would likely have the opposite effect. He stated, “Bitcoin will not reach a new all-time high before the votes are counted.”
