• Bitcoin mining difficulty recently reached close to 40.0T.
• The rise in network difficulty comes as price and hashrate saw a rise.
• A look at BTC price move reveals that it had increased by over 37% from the start of its surge to its present price.
Bitcoin Network Difficulty Inches Close to 40.0T
The remarkable ascent of Bitcoin [BTC] has been an important topic in the broader cryptocurrency community, with other coins and tokens following the king coin’s price increase. Blockchain.com’s stats revealed that the network difficulty had been increasing consistently over the past few weeks, and was very close to 40.0T at the time of writing – the highest level in more than a year.
What is Network Difficulty?
The Bitcoin network difficulty is a metric for gauging the difficulty of mining new blocks in the Bitcoin blockchain. It adjusts itself every 2016 block (about every two weeks) so that blocks are mined on average every 10 minutes regardless of fluctuations in processing capacity on the network, making it more challenging to mine a block as the difficulty increases, and vice versa.
Why is Difficulty Increasing?
Adding extra computing power (hash rate) to the Bitcoin network increases its difficulty, making it harder for miners to solve cryptographic puzzles needed to mine a block. To keep this time period consistent regardless of changes in hash rate, the difficulty needs to adjust accordingly – which explains why it has been climbing as more miners join with higher hash rates powered by greater incentives from rising prices for Bitcoin. At this writing, observed data revealed a surge in January 2023 indicating monthly contributions higher than 269,000 TH/s for Bitcoin’s hashrate..
A Look at BTC Price Move
Bitcoin has seen an impressive 37% growth since its surge began up until now – reaching almost 50% growth at peak times before dropping 4% during its latest trading period around $22,900 according to press time data. The Relative Strength Index (RSI) also shows that while market confidence remains bullish overall there have been signs of slowing down slightly recently as well as minor corrections along with bitcoin’s impressive climb over recent months..
Bitcoin has once again demonstrated its potential for strong performance within financial markets and cryptocurrency networks alike due both organic investor interest and developments such as improving infrastructure or regulatory advancements across various countries worldwide; despite some minor corrections along its way upwards, BTC continues displaying remarkable strength overall with no sign yet of any significant bearish reversal trends anytime soon