Bitcoin mining difficulty has reached a new high of 864 trillion ahead of the upcoming halving event in April.
Bitcoin ( BTC ) mining difficulty has hit an all-time high of 86.4 trillion, according to data collected by btc.com, as businesses generate massive amounts of computing power ahead of the much-anticipated halving event later this month.
Mining difficulty refers to the amount of computer power required to solve the complex mathematical problems needed to generate new bitcoins. The Bitcoin network is expected to undergo a code update on April 20, and the recently released mining difficulty report is the last update before this halving event.
According to data from btc.com, mining difficulty has increased by about 600% since the last halving in 2020. In addition, mining difficulty has been on a continuous upward trend since May 2021.
Bitcoin miners are using more computing power than ever before as they look to accumulate more cryptocurrency and increase their cash reserves before the block reward is halved. Block rewards are the main source of income for miners, and soon the rewards will drop to 3.15 BTC. The drop will also reduce daily bitcoin output from 900 to 450.
Bitcoin halving could trigger short-term market decline
According to CoinMarketCap, historically, the asset usually drops 15% to 40% before the halving, and in the long run after the code update, the price of Bitcoin tends to enter a parabolic growth. However, Bakhrom Saydulloev, head of product at Mercuryo, said in an interview with reporters that a short- to medium-term retracement caused by miners liquidating Bitcoin may be imminent.
Bakhrom Saidloyev, head of Mercuryo products, said:
“Historical data shows that in the short term after a Bitcoin halving, the price of Bitcoin usually falls. At the same time, in the medium and long term, the halving often triggers a bull run. For example, after the halving, since the block reward is reduced by 50%, some miners may feel pressured to sell their Bitcoin holdings to cover operating costs, which affects their profitability. This may lead to a “dumping” phenomenon in the market as some investors feel uncertain about future price trends.”
Seidloyev further raised the point that compared with previous halving events, this one occurred at a relatively poor economic and investment environment, and he particularly pointed out the uncertainty of current cryptocurrency regulatory policies. At the same time, the general view is that the establishment of a spot Bitcoin ETF may promote the inflow of funds into the cryptocurrency market. In fact, such spot Bitcoin ETFs have brought in more than $200 billion in trading volume in just four months. #比特币 #挖矿难度
