Bitcoin Mining Difficulty Surges Ahead with Approaching Halving

Bitcoin mining difficulty reached a record high on March 14, reaching 83.95 trillion hashes. This milestone was achieved on the same day that Bitcoin reached its all-time high price of $73,835. The increased investor sentiment leading up to the April Bitcoin halving played a role in this achievement. Mining difficulty is a measure of how difficult it is to mine Bitcoin, and it is determined by the number of miners on the network and the complexity of cryptographic puzzles they need to solve.

The previous measurement of mining difficulty was 79.35 trillion hashes, meaning that the new high represents a 5.8% increase. The rate at which these hashes were being solved was 613.94 exahashes per second, up 1.96% from the previous cycle. Interestingly, mining difficulty had surpassed 80 trillion hashes a month prior but had dipped again at the end of February. According to projections from BTC.com, the upcoming difficulty check on March 27 is expected to show a slight increase to 84.17 trillion hashes.

As mining difficulty has increased, Bitcoin’s price has continued to rise as well. On March 11, mining rewards reached $78.89 million, surpassing the previous high of $74.4 million set in October 2021. Bitcoin’s price also experienced fluctuations during this time, reaching $72,953 on March 12 before dropping back down to $69,655. On March 14, the price briefly reached a new all-time high of $73,835 before falling to $69,813. At the time of writing, Bitcoin has climbed back up to $70,000.

Many analysts and experts in the cryptocurrency industry credit Bitcoin’s steady growth to the upcoming halving event in mid-April. During a halving, the block reward for mining Bitcoin is cut in half. The first halving occurred in 2014 when rewards went from 50 to 25 BTC. The second halving occurred in 2016, reducing rewards to 12.5 BTC. The most recent halving took place in 2020, further reducing rewards to 6.25 BTC. This event is seen as a significant factor driving Bitcoin’s price and investor sentiment.

Bitcoin mining difficulty has reached a new high of 83.95 trillion hashes, accompanied by a surge in the price of Bitcoin. As the cryptocurrency market prepares for the upcoming halving event, the industry is closely monitoring these developments and projecting future increases in mining difficulty. The halving event has historically had a significant impact on Bitcoin’s price and has contributed to the steady growth of the cryptocurrency.