Recent Studies Have Affected the Area of Concern report Bloomberg illustrates that Bitcoin’s difficulty is at a record-high, a reflection of the increasing competition among cryptocurrency miner.
CoinWarz, a crypto-mining tracking site, reported that mining difficulty increased by 3.5% on Wednesday. This steadily increasing metric is often in line with expectations about Bitcoin’s future price.
The Post-Halving Challenges
Bitcoin’s price dropped by approximately 10% following the April Halving which cut miners’ potential revenues in half. The current price is $57,000.
According to the report, the reduction in profit margins has been significant for many. mining companiesIn particular, those with higher operating costs. Christopher Bendiksen is the Bitcoin Research Lead at CoinShares.
The effect of the all-time high in difficulty, right on the back of the Halving, is making the outlook extremely challenging for many miners—especially those at the higher end of the cost curve. According to the researcher, certain miners could struggle just to stay cash-flow positive let alone reach profitability if trends continue.
Read Related Articles
The Bitcoin mining industry is largely dependent on miners, who use specialized computers for the validation of transaction data. blockchainIn this way, the network is protected. They receive Bitcoin as a reward for their work.
This year, however, financial conditions for the mining industry have been difficult. Marathon Digital Inc. shares and Riot Platforms Inc. share prices both fell by 31% and 50%, respectively.
Bitcoin has, however, shown stability despite the current economic challenges. The price of Bitcoin rose 38% in March to a new record high, $73,798. The rise was driven by an optimistic outlook for US dollar demand. exchange-traded funds ETFs that contain BTC
Additionally, Bitcoin’s hash rate—the total computing power supporting the network—hit an all-time high in September, indicating strong participation in mining activities.
Bitcoin Market to face a crucial period in the coming months
The Bitcoin price often drops after the Halving, but then rises again several months afterwards, reaching record-breaking highs. Many participants in the industry are anticipating an increase. rally Bobby Zagotta expressed optimism in regards to market movement during the fourth quarter.
Bendiksen warned that some miners seem to be betting on Bitcoin’s price increasing significantly. “If that fails to materialize, there will be trouble ahead for some operators,” He warned.
Read Related Articles
In order to determine the future health of the mining industry and market in general, the coming months are crucial. price recoveries The number of people who are looking to buy a home is expected to increase in the last quarter of the year.
BTC, currently the biggest cryptocurrency in the world, is still struggling to recover its previous levels. It has lost 0.4% over the past 24 hours and almost 2% during the past seven days.
Chart from TradingView.com, image from DALL.E
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com
