Bitcoin Mining Difficulty Reaches All-Time High! What Does This Signify? Here Are the Details

Bitcoin’s mining difficulty increased by 3.9% on Tuesday, reaching an all-time high of 95.67 trillion Terahashes (T), according to data from Glassnode.

Bitcoin Mining Difficulty Reaches All-Time High

This increase reflects the increasing competition in the mining sector, which is supported by record-high hashrate and higher mining revenues. These indicators suggest that a potential Bitcoin bull run could be on the horizon.

Bitcoin’s mining difficulty, which determines how difficult it is to mine a new block, has increased by 27% so far this year, from 72T to 95.67T.

Of the 22 difficulty adjustments in 2024, 13 have been positive. The network adjusts difficulty approximately every two weeks to ensure that new blocks are mined on average every 10 minutes.

Simultaneously, Bitcoin’s Hashrate – the total computing power used to mine and secure the network – reached an all-time high above 700 exahashes per second (EH/s), underscoring the continued growth and investment in mining infrastructure.

Increasing Difficulty and Industry Consolidation

While the increase in difficulty highlights the increasing power of the network, it also leads to higher operational costs, squeezing profit margins for miners.

As a result, smaller and less efficient miners were forced out or sold their Bitcoin holdings to fund operations. Since November 2023, over 30,000 BTC miners have left their wallets in one of the longest distribution periods in mining history.

However, since July 2024, miner balances have stabilized, indicating that more efficient, large-scale miners are adapting to the new conditions.

Public miners now control around 30% of the total Hashrate, consolidating the industry into fewer but more powerful players.

*This is not investment advice.