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The resilience of the Bitcoin network continues to manifest as its mining difficulty hit another all-time high (ATH). The adjustment, aimed at maintaining the stability and security of the network, now requires a formidable 225 zetahashes (10^21) to discover a new block.
The increase in mining difficulty correlates directly with the amount of computational power, or hashrate, being devoted to the Bitcoin network. As more miners join the fray, the network's mining difficulty increases accordingly, maintaining the average block discovery time at around 10 minutes. This recent ATH indicates that despite market fluctuations, Bitcoin's underlying network is growing.
The latest upwards #Bitcoin Mining difficulty adjustment has reached yet another ATH as more hashrate is deployed to the network, now requiring 225 zetahashes (10^21) to discover a new a block. pic.twitter.com/Au1prMaLZT
— glassnode (@glassnode) June 16, 2023
While network strength and mining power seem to be reaching unprecedented heights, the price of Bitcoin is currently facing a local downtrend. Bitcoin is priced at around $25,540 at the time of writing, consolidating near the 200 Exponential Moving Average (EMA), a widely used technical indicator by traders. Unfortunately, there are no signs of the price breaking out of the local descending price channel in the short term.
Alex DovbnyaThe divergence between Bitcoin's network strength and price performance raises a critical question: why the increase in the hashrate amid a price downturn? The answer lies in the long-term perspective adopted by Bitcoin miners. Miners invest heavily in specialized hardware with long lifespans. These investments are based on long-term profitability forecasts rather than short-term price movements.
Miners' continued commitment, reflected in the latest ATH in mining difficulty, reaffirms their belief in Bitcoin's long-term value proposition, regardless of short-term price fluctuations. While the price may be caught in a local downtrend, the network's robustness and security, backed by an ever-increasing hashrate, provide a positive outlook for Bitcoin's future.
Alex Dovbnya
Vladislav Sopov
Dan Burgin