Bitcoin mining difficulty hits a record high of 17.3T

Although the price of Bitcoin is still hovering in the lower $9,000 area, it does not mean that it is quiet. Recently, Bitcoin has just reached a new milestone.

Bitcoin mining difficulty hits new high

Bitcoin’s mining difficulty has been growing for some time, which led to a new high earlier today. The mining difficulty hit a new record of over 17.3T, an increase of 9.89% from the previous difficulty cycle.

The total computing power (hash rate) of the Bitcoin network has reached 133 EH today, which is almost close to its historical high.

The growth of Bitcoin's total network computing power (hash rate) and mining difficulty means that miners are more interested in participating, which is generally seen as a positive development. Naturally, investors welcome any bullish signals, and so do traders, especially since the market is quietly waiting for Bitcoin to rise due to the four-year halving of Bitcoin on May 11.

The total network computing power (hash rate) and mining difficulty are usually correlated, so the subsequent increase is not surprising. After all, when the difficulty rises, it means that more miners are trying to solve the obstacles and get the rewards.
More miners means a greater number of Bitcoin network participants, and therefore a more secure network, which is another positive byproduct of miners’ interest.
Now, since miners are back, it shows that they expect the price of Bitcoin to rise. This is the only reason to be willing to mine BTC.
As many people know, the Bitcoin halving in May reduced the block reward from 12.5 BTC per block to 6.25 BTC per block. This means that each miner will receive a lower participation amount, which will not be a problem if the BTC price surges. If the price drops or remains the same, then mining will not be profitable for most participants.
Another possibility is that mining conditions are now more favorable. One possible scenario is the arrival of the rainy season in China, which means more electricity production, which also means lower electricity prices, which is needed for Bitcoin mining. A large number of Chinese miners are participating in Fengshui mining, which has also caused the increase in the computing power of the entire network to a certain extent.