Bitcoin fundamentals diverge from BTC price dip as difficulty hits new all-time high


Bitcoin (BTC) could have tanked to six-month lows this week, however below the hood, the community is now verifiably stronger than ever.

Information from on-chain monitoring sources together with Glassnode and confirms that as of Friday, the Bitcoin community problem is at a brand new all-time excessive.

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Problem passes 26 trillion for the primary time

The issue, which expresses how a lot miners must work to unravel the equations to course of transactions on the blockchain, is arguably an important of basic Bitcoin community parts.

The metric robotically adjusts to extend or lower mining effort based on miner participation — the extra competitors amongst miners, the upper the issue.

This has the impact of conserving mining secure no matter components akin to sentiment, value or unintended incidents.

After dipping in mid-2021, problem took the remainder of the 12 months to bounce again, with the most recent automated readjustment including 9.32% to the earlier degree. With that, it entered unexplored territory above 26 trillion.

Commenting on the occasion, cryptocurrency journalist and commentator Colin Wu noted that the rise is the best in over half a 12 months, with knowledge confirming that late August noticed the final adjustment of greater than 10%.

BTC value dip fails to interrupt miner resolve

The issue thus logically adopted the hash fee larger, this having regularly set new report highs final 12 months. 

Associated: Breaking ‘bear market’ in Bitcoin demand will spark next BTC price surge — Analysts

The hash fee, an estimate of the processing energy devoted to the blockchain by miners, presently sits at 192 exahashes per second (EH/s), having briefly reached 218 EH/s on Jan. 10, based on MiningPoolStats

Bitcoin hash fee for week starting Jan. 17 (screenshot). Supply: MiningPoolStats

As Cointelegraph often reports, an previous mantra amongst age-old hodlers is that “value follows hash fee,” this development nonetheless taking a again seat for a lot of as fundamentals transfer in the other way to identify value.

The rising hash fee thus implies that on longer timeframes, miner optimism over the profitability of their operations stays. Calculations final week revealed their break-even point to lie at round $34,000.