Bitcoin mining difficulty surged by 3.6% to an all-time high of 92.67 trillion from 89.47 trillion. Bitcoin’s hash rate also recently rose to peak levels of 700 EH/s but has now settled at 670 EH/s. The increased mining difficulty has significantly mounted pressure on the profit margins of the mining venture.
Bitcoin mining difficulty brought the digital asset to the spotlight after surging to an all-time high. The 3.6% increase in mining difficulty has threatened the profitability of the mining venture by reducing the mining profit margins.
The rising difficulty portrays the competitive environment for Bitcoin miners on the network as more miners scramble for limited block rewards. The competition is constructive for enhancing network security and decentralization. However, miners are struggling to remain afloat with declining profit margins.
BTC mining difficulty peaks at 92.67 trillion
Data from BTC.com shows that the mining difficulty is at its peak level of 92.67 trillion from a low of 89.47 trillion at press time. Bitcoin’s overall hashrate also rose to an all-time high.
According to a graphical chart by Hashrate Index, Bitcoin mining hashrate peaked at 700 EH/s on September 8th. However, the hashrate has since dwindled and currently settles at 670 EH/s at the time of writing.
Bitcoin mining revenue has also declined recently. According to YCharts, Bitcoin miners’ revenue has decreased in the last four days from $29.12 million on September 8th to $19.60 million on September 11th.
The network’s hash price is also quite low. The estimated daily value of 1 petahash per second (PH/s) is currently at $39.99, according to data from Hashrate Index. The data also reveals that on-chain fees have significantly declined and accounted for only 1.83% of the network’s revenue in the past 24 hours.
Data from Mempool suggests miners’ current difficulty adjustment level came at a block height of 860,832. Mempool data also indicates that a high-priority fee rate of six satoshis per virtual byte (sat/vB) will cost $0.47 to process an on-chain transaction.
Bitcoin miners liquidate 30,000 BTC in 72 hours
The declining Bitcoin mining revenue and the increasing mining difficulty are mounting significant financial pressure on mining firms. These implications have also been reflected in the blockchain.
According to technical and on-chain analyst Ali Martinex, Bitcoin miners liquidated over 30,000 BTC worth $1.71 billion in 72 hours as of September 11th. The analyst referenced a chart from the data provider and analytics platform Santiment.
#Bitcoin miners have sold over 30,000 $BTC in the last 72 hours, worth around $1.71 billion! pic.twitter.com/OuaiIo7QZ9
— Ali (@ali_charts) September 11, 2024
Bitcoin is currently trading at $57,990.25, according to CoinMarketCap. The digital asset has risen 2.41% in the last 24 hours and 1.4% in the last seven days despite the recent miners’ liquidations.
Lead analyst at Swyftx, Pav Hundal suggested the crypto market has high investor confidence. Hundal also mentioned that macroeconomic factors, such as the imminent interest rate decision, could shift investor sentiment and spark market volatility.
Source: https://www.cryptopolitan.com/bitcoin-mining-difficulty-surges-peak-levels/