Yesterday, Bitcoin mining difficulty reached an all-time high of 83.95 trillion hashes, reflecting increased competition among miners. Paradoxically, on the same day, the price of BTC experienced a massive drop after reaching an all-time high of $73,835.
Mining difficulty steadily increasing despite price volatility
The difficulty of mining Bitcoin continues to climb, reflecting the continued arrival of new miners despite a very volatile market. March 14 marked a new high at 83.95 trillion hashes, up from 79.35 trillion a month earlier.
This record level reflects a massive investment in computing power and energy on the part of miners. The Bitcoin algorithm automatically adjusts the difficulty approximately every 2 weeks (or every 2016 blocks), to maintain a stable mining time per block of 10 minutes, regardless of the number of miners.
The adjustment to 83.95 trillion hashes represents a rate of 613.94 exahashes per second (EH/s), compared to 602.14 EH/s in the previous adjustment. This constant increase underlines the very high level of trust and commitment of miners to the Bitcoin network over the long term.
However, the timing is questionable. Why such a rush into mining even though the price of BTC and the crypto market as a whole are experiencing a strong correction? Is this a bet on a future rise in prices or a frantic race despite bearish signals and the approaching Halving?
Bitcoin caught in headwinds
March 14 was a paradoxical day for Bitcoin. Its price initially reached a new all-time high at $73,835, raising hopes of a surge towards $100,000. But the trend suddenly reversed, causing it to fall to $67,501 at the time of writing this article.
This extreme volatility has spared almost no crypto. Ethereum, Solana, BNB… The main altcoins followed the seesaw trend of BTC, with euphoric highs quickly erased by severe corrections.
The plunge in the price of Bitcoin led to the liquidation of nearly 200,000 traders in the space of 24 hours. A scathing reminder of the risks inherent in investing in crypto, including BTC despite its safe-haven status.
A decline below $70,000 constitutes a worrying signal for analysts. Many technical supports have been dented and the Fear and Greed Index is near an all-time low. Will the downtrend be sustainable or will the market find new life? The future will tell.
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