After the most recent difficulty adjustment on July 12, the difficulty of mining bitcoin reached a record-high of 53.91 trillion units. It serves as an indicator of how challenging mining Bitcoin blocks is. In order to maintain a 10-minute processing time, the blockchain adjusts its difficulty every two weeks. As the processing power of the …
After the most recent difficulty adjustment on July 12, the difficulty of mining bitcoin reached a record-high of 53.91 trillion units. It serves as an indicator of how challenging mining Bitcoin blocks is. In order to maintain a 10-minute processing time, the blockchain adjusts its difficulty every two weeks. As the processing power of the network rises, it adjusts to make mining more difficult and less profitable for individual miners.
The most recent adjustment will increase the strain on miners, who have been selling off their mined BTC since June. Analysts assume that the absence of miner accumulation has probably restricted a price increase for bitcoin. The profitability of medium- and small-scale miners will likely dip into negative territory as a result of the most recent difficulty adjustment, compelling them to temporarily turn off some of their ASIC hardware. The potential capitulation of smaller miners would ultimately allow stronger miners to amass Bitcoin, which might lessen the pressure on mining selling. Miners have recently been witnessed transferring record numbers of BTC to exchanges. A K33 research claims that publicly listed miners sold all of their output in May. The 30-day cumulative BTC transfer volume from miner wallets to exchanges surged to a six-year high in June and July as well, indicating that miners continued to sell their Bitcoin at an alarming rate.
While miners have turned to selling, Bitcoin whales have done the exact opposite, according to supply distribution statistics from on-chain analytics firm Sentiment. Since June 17, the most active Bitcoin investors, often referred to as whales and sharks and identified by addresses owning between 10 and 10,000 BTC, have raised their holdings by $2.15 billion. Additionally, Bitcoin held by exchanges has dropped below 2017 levels, indicating that investors are withdrawing their BTC from exchanges and that the amount of illiquid Bitcoin is increasing. The price of BTC has been subdued in a small range between $29,500 and $31,500, which may be largely the result of selling pressure from miners. Previously, the accumulation of Bitcoin among whales had driven the price of BTC higher.
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Please note that this article does not offer any instructions or suggestions regarding investment decisions. Therefore, it is essential that you carefully evaluate your financial situation and conduct thorough analysis, or seek advice from a qualified professional, before making any investment decisions.
