Bitcoin mining difficulty raised by 9% since its last halving. Many predicted that Bitcoin would go to a death spiral after May, 11 halving. But, Bitcoin hash rate is now at a record high, which shows the health of ecosystem.
The rise of hash rate and stable Bitcoin (BTC) mining industry both show a positive sign for long-term and medium-term trend of BTC.
A rising hash rate is a positive sign
The statistics from Glassnode show that Bitcoin’s mining difficulty increased by 3.6% on Aug. 24. Now, it reached its all-time high point. The data shows that miners are still actively mine new coins the same as the time before halving.
As we know Bitcoin halving happens almost every four years and the block reward cut to half for miners. So, the miners expect the Bitcoin price becomes double after halving in order to keep mining profitable.
Bitcoin Mining Difficulty Raised 9%; miners don’t leave the network
The recent increase in hash rate and its all-time high record show that miners are predicting Bitcoin price will increase in the near future. In fact, they keep mining in the hope that price will increase significantly.
There could be another reason as well. The Chinese miners are still profitable. The reason is that the Sichuan province is currently experiencing its rainy season. As a result, the mining farms have access to cheap electricity using hydroelectric power plants. So, by having cheap electricity, mining is still profitable for them, and they remain active in the network.
Does it cause reducing selling pressure?
An on-chain analyst called Willy Woo, previously mentioned that miners are one of the major sources of external selling pressure, which affects Bitcoin price. It means, when miners start to sell their coins it increases the supply and respectively affects the price.
The recent mining difficulty and hash rate show that miners don’t have plan to sell their coins. The mining sector will remain strong until the price did not fall dramatically.