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The Bitcoin mining difficulty is growing quickly and has notably returned to its peak. With the mining difficulty recalibrating every two weeks, the latest reading, as spotlighted by CryptoQuant cofounder and CEO Ki Young Ju, just surpassed 101.6T.
Unusual Bitcoin mining trend
As Ki Young Ju noted, it is almost impossible to imagine that Bitcoin mining difficulty almost exceeded 100,000,000,000,000 a few years back. He noted that this jump to a new all-time high has been the trend for a while, as Bitcoin keeps smashing records irrespective of price action.
Alex DovbnyaThe growing mining difficulty has crucial implications for the digital currency. For one, the harder it is to mine one block, the scarcer Bitcoin emissions will be. This will directly impact the circulating supply which, if matched with higher demand, might trigger a price rally.
The Bitcoin network fundamentals suggest a potential rally ahead. However, the major source of institutional BTC demand, the spot Bitcoin ETF market, bled out earlier today, with outflows also hitting an unusual high.
In addition, Bitcoin looks primed to take advantage of this positive network trend and reclaim the psychological level of $70,000.
More growth triggers to watch
At the time of writing, the Bitcoin price was changing hands for $68,847, up marginally by 0.48% in the past 24 hours. Notably, the coin is experiencing intense volatility amid a pivotal week for the mainstream market.
Yuri MolchanThe sustained rebound in the price of Bitcoin may not come until after the United States Federal Reserve announces its interest rate cut, as expected on Nov. 7. The pivot from the big bank might further catalyze investor sentiment positively.
This is because lower borrowing costs fuel liquidity boosts that might weaken the dollar. For pro-crypto investors, a Bitcoin hedge or as a store of value is a better bet overall.
Arman Shirinyan
Dan Burgin
Alex Dovbnya