The mining difficulty on the Bitcoin network has recently hit a new all-time high, at a time in which the flagship cryptocurrency’s price keeps rising. This, according to some, could mean miners are investing their profits into more equipment, betting on BTC.
According to data from BTC.com, the mining difficulty recently increased by 11.26% to reach a high 7.46 trillion, above the previous record made in October of last year, when the difficulty rose to 7.45 trillion. Similarly, the cryptocurrency’s hashrate has been growing steadily, and is now at over 53 EH/s.
— CoinMetrics.io (@coinmetrics) May 31, 2019
As CoinMetrics points out, the data seems to show that cryptocurrency miners are reinvesting their margins into more mining equipment, a bet on the flagship cryptocurrency’s security and sustainability.
The recent difficulty adjustment is the highest one since December of last year, when the Bitcoin network saw difficulty increase by little over 10%. Bitcoin’s mining difficulty is adjusted every 2,016 blocks – roughly every two weeks – to ensure the rate at which new blocks are created remains constant at 10 minutes per block.
The next difficulty adjustment is expected to bring the network to a new all-time high at 8.25 trillion. Notably, the difficulty keeps rising along with BTC’s price. CryptoCompare data shows the cryptocurrency is up by 3.6% in the last 24-hour period, and by 57.8% in the last 30 days.
The price of bitcoin has nearly tripled since it hit $3,200 in December of last year, as it’s currently trading at over $8,600. The cryptocurrency has briefly moved past the $9,000 mark this year, but saw its price drop by 10% in under six hours shortly after.
Recently, billionaire investor Mike Novogratz stated he believes BTC will consolidate between the $7,000 and $10,000 marks in the near future, as “trees don’t grow to the sky.” The CEO of Galaxy Digital showed he’s still bullish on bitcoin, which he predicted will hit $20,000 within 18 months.