Bitcoin price action is currently capitulating according to the price chart; however, its hash rate and mining difficulty continue to increase. As the primary crypto trades below $20,000 price, data shows that its fundamentals enjoy a significant increase.
Bitcoin Difficulty Level Skyrockets Despite Bearish Market
Bitcoin recently lost about 8% of its price within the last week. However current on-chain statistics show that Bitcoin mining is complex, and the hash rate seems undisturbed by BTC’s falling price action.
Furthermore, the BTC fundamental indicators have continued to move in an up-only pattern for the past week. The pattern suggests a significant increase in hardware and rivalry within the network.
The assumption is further bolstered by the difficulty level, measured by the intensity of rivalry among miners who compete for block incentives, which should project to about a 6.8% increase by next week.
Mining Expert Firms Said Difficulty May Register New All Time High
In addition, BTC.com, an on-chain data source, stated that the current difficulty level is the highest increase recorded since January 2022. Another mining expert firm, Blockabridge, commented that if the growth hits the predicted 6.8% mark, BTC mining difficulty will register a new all-time high.
Additionally, Blockabridge added in its daily forecast column that the current bearish market frustrated many miners to suspend their activities. It continues that most miners with old technology models suffered unfavorable market impact the most.
Furthermore, Blockabridge stated that dipping price value, high fees and cost of production, and high electricity consumption all contributed to the frustration of miners. Conclusively, the forecaster firm hinted that the overall bearish market is giving miners without efficient and modern mining equipment a tough time mining.
Hash Rate Target New All-time High Despite Bearish Market
Similarly, the statistical chart showed that the hash rate also follows the pumping pattern of mining difficulty. The hash rate recently bounced back from loss and has since been increasing continuously, pushing toward registering a new record high.
According to a data report from an analytic firm, MiningPoolStats, BTC currently has a hash rate of about 247 EH/s (exahashes per sec). The continuous upward movement of the hash rate shows it would hit the all-time high of 251 EH/s it recorded in April.
However, note that hash rates are usually estimates which tend to fluctuate. Hence, the hash rate is in no way a determinant of whether miner activities decrease or increase.