BITCOIN MINING DIFFICULTY TO ADJUST DOUBLE-DIGITS DESPITE NEW ATH, WILL THIS TRIGGER A RALLY?

Since the beginning of this year, the difficulty of mining Bitcoin has been steadily climbing, and there does not appear to be any sign that this trend will soon reverse itself. The most recent increase in Bitcoin mining difficulty has resulted in the cryptocurrency reaching a brand-new all-time high (ATH). The fact that the mining difficulty is anticipated to increase by a factor of ten or more during the next several weeks makes the situation even more intriguing.

DIFFICULTY OF BITCOIN MINING REACHES NEW HIGH

As more mining hardware enters service, it's unsurprising that Bitcoin mining difficulty is rising. The most recent adjustment to the game's difficulty, implemented on the 22nd of this month, is evidence of this. The current record high difficulty level resulted from a 6.17 percentage point rise from the previous week.

According to CoinWarz, a service that tracks Bitcoin mining, the difficulty of mining Bitcoin just reached an all-time high of 55.62 T. According to the data supplied on the website, this translates to a weekly increase of 6.17%, a monthly increase of 3.17%, and a quarterly increase of 12.25%. However, the difficulty of mining has increased by 2.55% in the last 24 hours alone.

The difficulty of mining Bitcoin must be adjusted to maintain a consistent block creation rate. Because of this, the network can produce blocks at a pace nearly constant, and more mining rigs are brought online. This is accomplished by making the blocks themselves more difficult to locate.

The complexity of mining is expected to rise even with the many recent advancements that have been made. CoinWarz predicts that the upcoming difficulty change, expected to take place on Monday, September 4, would boost the difficulty level by an extra 13.42%. If this happens, it would be a new record for mining difficulty, which would put it at 63.09T.

WILL THE INCREASE IN DIFFICULTY CAUSE A BTC RUN?

Although increasing Bitcoin's mining difficulty is helpful for the network, it is unlikely to raise BTC prices. As mentioned, mining difficulty helps maintain a steady block count despite increased mining activity.

Here, mining difficulty reflects how safe the Bitcoin network is right now. Coinwarz notes that the network is currently 1.18 minutes faster than planned, meaning that transactions are safer than ever.

Bitcoin's price is still recovering from its precipitous drop one week ago. At the moment, bulls are having a difficult time establishing substantial support at $26,000, which has the potential to act as a launching point for a rebound.