Bitcoin’s Network difficulty is poised to set new highs just months after everybody believed that the asset will not recover from the March crash. The cryptocurrency noted a 50% drop in one day in March as the global markets imploded as we are reading further in the upcoming Bitcoin news.
BTC miners followed suit and shut down all their machines because they weren’t profitable anymore. Just three and a half months later, the network data shows that the asset is now much stronger than ever. The hash rate of the BTC network is surging in spite of the stalling market. The data from TradeBlock reported on July 7th that the seven-day moving average of the measure hit an all-time high above 124 exahashes per second. This is double from the level that the hash rate was over a year ago and 1000% higher than the hash rate at Bitcoin’s $20,000 record high.
Bitcoin’s network difficulty regulates how fast the blocks are mined and one analyst under the name PlanB said:
“Despite death spiral FUD, miner capitulation FUD, future manipulation FUD, corona, PlusToken FUD, Tether FUD, whales selling FUD etc… BTC just had its third-best quarterly close ever ($9.1K) and is heading for difficulty ATH Monday (17E12).”
This comes on the back of the influx of investments made by crypto miners. The Vancouver-based company HIVE Blockchain Technologies announced that it has purchased 200 of the newest mining machines of Bitmain because it intends on activating the machines in the upcoming three weeks. Core Scientific, the American-based blockchain and AI provider, made a bigger investment after it obtained 17,595 new Bitmain Antminer s19s which represent the biggest shipment of machines to the US.
Bitcoin’s mining ecosystem is also benefiting from the rainy seasons in China because the crypto mining is centralized there, in river regions where hydroelectricity is available and the power for mining is cheaper. Analysis suggests that the health of Bitcoin miners is correlated with the Bitcoin price action. The investor Charles Edwards revealed a new model that shows Bitcoin’s price has a long history of being influenced by the power consumption of the network. his latest analysis suggests that Bitcoin is trading around 25% under its energy value at $12,800. The miners are now activating new Machines so Edwards’ analysis suggests that Bitcoin will rally and go over $12,800.
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