Key Points
- Bitcoin mining difficulty has increased by 1.5%, reaching a record 84.4 trillion.
- The increase in difficulty is linked to a rise in Bitcoin’s seven-day average hash rate, which recently exceeded 600 exahashes per second (EH/s).
Bitcoin miners, especially those with less powerful equipment, may find the recent increase in mining difficulty challenging. The latest data shows a 1.5% increase in Bitcoin mining activity, setting a new record at 84.4 trillion.
Increasing Mining Difficulty Amid Market Optimism
Mining difficulty is a measure of how challenging it is to mine a new block compared to the easiest possible scenario. As the number of miners grows, the difficulty of Bitcoin mining generally increases due to heightened competition for new blocks. Conversely, if the number of miners decreases, the difficulty decreases, making it easier to discover new blocks.
The recent rise in mining difficulty is attributed to a significant increase in the network’s seven-day moving average hash rate, which has recently surpassed 600 EH/s.
It’s worth noting that Bitcoin mining difficulty experienced its largest drop since December 2022 on May 9th, falling by 5.9%. This drop was a direct result of the April 20 halving event, which also reduced miner subsidy rewards. However, a temporary surge in transaction fees, associated with the hype around Runes, initially mitigated the impact of this decline.
Since this adjustment, Bitcoin’s hashrate has fluctuated between 580-590 EH/s. However, increased optimism surrounding the approval of spot Ethereum (ETH) exchange-traded funds (ETFs) in the United States has led to an industry-wide price increase. This optimism has pushed Bitcoin’s hashrate to approximately 606 EH/s.
Recovery in Hash Price Indicates Improved Revenue Potential for Miners
In line with the difficulty adjustment, Bitcoin’s hash price has seen a modest recovery. After dropping to an all-time low of under $50 per petahash per second (PH/s) per day on April 29, the hash price rebounded to $55 per PH/s per day earlier in the week. The hash price is a metric widely used to calculate potential miner revenue.
As the crypto community waits for the SEC’s decisions, the interconnected dynamics of Bitcoin mining difficulty, hashrate, and price movements have once again become prominent. The latest developments demonstrate how regulatory uncertainties can impact both inside and outside the sector. These speculations not only influence investor sentiment but also affect operational metrics like mining difficulty and hash price.
