While Bitcoin reached its lowest level since August 2021 a few hours ago, the fundamentals of the network remain solid.
As the portals Glassnode and BTC.com recently reported, the difficulty of the Bitcoin network reached a new all-time high this week.
Bitcoin: a mining difficulty at more than 26,000 billion
The level of difficulty, which translates to the amount of work miners have to put in to solve the equations that allow them to process transactions on the blockchain, is arguably the most critical indicator of the health of the Bitcoin network.
This data is adjusted approximately every two weeks according to the computing power allocated to the network. Thanks to this adjustment mechanism, the greater the competition among the miners, the greater the difficulty.
After recording a drop in mid-2021, this difficulty gradually increased. The latest adjustment took place on Friday. With a rise of 9.3%, the difficulty of the Bitcoin network has reached a new all-time high at more than 26,000 billion.
Hash rate: a record of nearly 200 EH/s
This increase in difficulty follows that of the hash rate – the computing power provided by miners to the Bitcoin network – which has continued to break records in recent weeks.
According to Blockchain.com data, this rate currently stands at 198.8 EH/s:
It should be noted, however, that the adage that “price follows hash rate” is not verified this time.
Because despite solid fundamentals, Bitcoin is going through a difficult period. The digital asset, which fell the night from Thursday to Friday below $ 38,500, has already lost more than 43% of its value since its all-time high of November 10, 2021, at nearly $ 69,000.
The increase in the hash rate shows, however, that miners remain, from a long-term perspective, optimistic about the profitability of their business – and, therefore, the price of BTC. A few days ago, Charles Edwards, CEO of asset manager Capriole, had indicated that miners were collectively balanced with a price of $ 34,000