The total network computing power rises with the price of the currency: Bitcoin mining difficulty rises again

Despite a nearly 10% price drop last week, Bitcoin mining activity is still sending bullish signals.

Along with breaking through the highest price in more than two years at over $19,000, Bitcoin’s mining difficulty is also showing some upward trends. Bitcoin’s mining difficulty has increased by 7.26 percentage points. Yesterday, the increase was 8.9 percentage points. As of press time, mining difficulty seems to be rising.

According to blockchain data analytics provider Glassnode , yesterday’s mining difficulty increase brought Bitcoin’s mining difficulty just 4% below its all-time high, approaching 140EH.

Mining difficulty is a term that describes how easy it is for nodes on the Bitcoin network to solve the code required to mine a block. The difficulty increases as the number of miners on the Bitcoin network increases, ensuring that new Bitcoins are not released into circulation too quickly.

Therefore, the increase in difficulty seems to indicate that there is an increase in the amount of mining activity currently taking place on the Bitcoin network. This is also supported by the increase in the amount of hash rate (the computer power required to solve cryptographic equations) on the Bitcoin network throughout November.

Will the price of the coin follow the hash rate level?

According to some analysts, the increase in mining difficulty and the increase in the total network computing power are both long-term bullish indicators for the Bitcoin price.

For example, Max Keiser, a well-known market analyst and broadcaster, always says that “price always follows the hash rate fluctuations of the Bitcoin network”: if the hash rate goes up, the price will follow (and vice versa).