The Bitcoin network difficulty has reached an all-time high. However, asset prices have fallen as a result of a regulatory crackdown in the United States.
BTC mining difficulty is at an all-time high, making it more difficult than ever to secure the next block.
To find the next block, miners must complete 39 trillion hashes (39T). Difficulty is frequently used to describe the level of competition among Bitcoin miners, or the processing power required to generate another block.
Mining difficulty has climbed by 47% from the same period last year, according to BitInfoCharts. This has put miners under a lot greater strain.
Furthermore, Bitcoin mining hash rates are nearing their high. Bitinfocharts now indicates a hash rate of 300 EH/s (exahashes per second), which is slightly lower than the late January peak of 316 EH/s.
Furthermore, starting February 2022, hash rates have climbed by 50%. This is beneficial for network security but terrible for Bitcoin miners.
Mining profitability has plummeted to multi-year lows as a result of these rising metrics. Mining profitability has dropped 66% since February 2022, to roughly $0.073 per day per terahash per second.
This measure is also referred to as “hashprice” by Hashrate Index. According to the analytics platform, hash prices will reach an all-time low of $0.055 in late November 2022. They reached as high as $0.40 during the bull market’s apex in late 2021.
Bitcoin miners are currently dealing with a three-pronged attack: low BTC prices, high difficulty and hash rate, and rising energy expenses.
According to Bitcoin mining analyst Jaran Mellerud, some public mining firms spend more than half of their revenue on administration. Those who have been more frugal in this area will be better able to withstand the storm.
CleanSpark, a mining company, presented its fiscal Q1 financial report on February 9. While revenue dipped, the corporation remained confident that it would continue to grow through mergers and acquisitions this year.
Furthermore, earlier this week, Hut 8 announced a merger with US Bitcoin Corp.
Bitcoin prices have plummeted today, putting even more strain on miners. The drop occurred as a result of the SEC’s crackdown on Kraken’s crypto-staking services.
BTC had fallen about 4% in the previous 12 hours, reaching $21,870 at the time of publication. Furthermore, the asset has already lost 7% in the last week as bears resume market pressure.