The recent Aktuellen report Bloomberg highlights the fact that Bitcoin’s difficulty is at a record-high, reflecting increased competition among cryptocurrency miner.
CoinWarz, a crypto-mining tracking site, reported that mining difficulty increased by 3.5% on Wednesday. The steadily rising metric often coincides with the market’s expectations of Bitcoin price movement.
The Post-Halving Challenge
Bitcoin’s price dropped by approximately 10% following the April Halving which cut miners’ potential revenues in half. The current price is $57,000.
According to the report, the reduction in profit margins has been significant for many. mining companiesIn particular, those with higher operating costs. Christopher Bendiksen noted that:
The effect of the all-time high in difficulty, right on the back of the Halving, is making the outlook extremely challenging for many miners—especially those at the higher end of the cost curve. According to the researcher, certain miners could struggle just to stay cash-flow positive let alone reach profitability if trends continue.
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Mining is an important part of the Bitcoin ecosystem. Miners use specialized computer systems to verify transaction data. blockchainThey are able to secure the network by doing so. As a result of their hard work, the users receive Bitcoins.
Then, there is the financial The mining industry has had a tough year. Shares in major publically traded companies like Riot Platforms Inc., Marathon Digital Inc., and Riot Digital Inc. have all experienced declines between 31% and 54 %.
Bitcoin, on the other hand, has been able to maintain its price despite recent challenges. It climbed 38% in March and reached a new record of $73,798. This was boosted by an optimism about demand for US dollars. exchange-traded funds ETFs that contain BTC
Additionally, Bitcoin’s hash rate—the total computing power supporting the network—hit an all-time high in September, indicating strong participation in mining activities.
Bitcoin Market: The Next Few Months Are Crucial
In the past, Bitcoin’s price would often dip after its halving, but then rebound several months afterwards, reaching new highs. Many participants in the industry are anticipating an increase. rally Bobby Zagotta is optimistic about the market in the fourth-quarter, as he, as CEO of Bitstamp USA’s crypto exchange, expressed.
Bendiksen warned that some miners seem to be betting on Bitcoin’s price increasing significantly. “If that fails to materialize, there will be trouble ahead for some operators,” He was warned.
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In order to determine the future health of the mining industry and market in general, the coming months are crucial. price recoveries In the second half of this year, the number of applications will increase. Other potential catalysts include the easing of macroeconomic conditions as well as the result of the US elections.
BTC, currently the biggest cryptocurrency in the world, is still struggling to recover its previous levels. It has lost 0.4% over the past 24 hours and almost 2% during the last 7 days.
Chart from TradingView.com, image from DALLE
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Source: www.newsbtc.com