U.Today – Mining difficulties are rising rapidly and in particular are back to their peak. As mining difficulty is recalibrated every two weeks, the latest reading, as pointed out by CryptoQuant co-founder and CEO Ki Young Ju, just topped 101.6T.
An unusual trend in Bitcoin mining
As Ki Young Ju noted, it is almost impossible to imagine that a few years ago, Bitcoin mining difficulty almost exceeded 100,000,000,000,000. He noted that this jump to a up-to-date record high has been a trend for some time, as Bitcoin has been breaking records regardless of price action .
Increasing mining difficulties have key implications for digital currency. First, the more tough it is to mine a single block, the rarer Bitcoin issuances will be. This will have a direct impact on circulating supply, which, combined with higher demand, may result in higher prices.
The fundamentals of the Bitcoin network suggest potential growth in the future. However, the main source of institutional demand for BTC, the Bitcoin ETF spot market, bled out earlier today, with outflows also reaching unusually high levels.
Moreover, Bitcoin looks poised to capitalize on this positive network trend and regain the psychological level of $70,000.
More growth drivers worth watching
At the time of writing, Bitcoin price was changing hands at $68,847, marking a marginal raise of 0.48% in the last 24 hours. It is worth noting that the coin is experiencing high volatility during a key week for the mainstream market.
A sustained rebound in Bitcoin’s price may only occur once the U.S. Federal Reserve announces an interest rate cut on November 7, as expected. The return from the massive bank could further spur positive investor sentiment.
This is because lower borrowing costs raise liquidity, which can weaken the dollar. For pro-crypto investors, Bitcoin is generally a better choice as a security or as a store of value.
