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Bitcoin worth has been buying and selling sideways up to now weeks, considerably declining from the $29,000 help. This bearish sample unfold panic amongst merchants however has not deterred miners. Instead, Bitcoin mining contributors seem to have elevated.

This is obvious within the elevated mining problem, which soared to a brand new file excessive. According to out there knowledge, Bitcoin mining problem surged 6.17% within the final week, alongside a spike in community exercise on August 22.

Bitcoin Mining Difficulty Spikes Up Amid Nosediving Prices

While BTC worth tanked by over 10% in a 7-day interval, miners’ confidence stays at its peak. According to data from btc.com, this uptick marks the sixth-largest enhance in Bitcoin mining problem in 2023. For context, Bitcoin mining problem measures the problem and time it takes to resolve a fancy cryptographic puzzle. 

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The Bitcoin community adjusts mining problem periodically relying on the variety of miners onboard. The subsequent problem adjustment date is about two weeks aways, with the estimated fee at 16.05%. Furthermore, the hash fee will increase as extra miners compete for restricted Bitcoin block rewards, growing mining problem. 

Therefore, the uptick in mining problem suggests Bitcoin’s bearish worth trajectory has not affected miners’ profitability. 

Increase In Hash Rates Reflects High Investor Confidence In Bitcoin 

Hash fee and mining problem correlate; due to this fact, because the Bitcoin mining problem will increase, the hash fee follows an identical pattern. Although calculating the hash fee is hard and difficult, the continuing determine is about to interrupt the prevailing file excessive of 538.05 EH/s. 

In an August 22 report: CryptoQuant analyst MAC_D attributed the elevated hash fee to excessive confidence in BTC and ETH community reliability and safety amongst traders.

MAC-D wrote:

Recently the costs of BTC and ETH have fallen by 10%. However, the community safety and reliability have elevated.

He additionally recognized two believable causes behind the uptick within the hash fee. Firstly, the analyst defined that Bitcoin’s hash fee elevated through the current worth decline. He mentioned the commentary depicts that miners grew to become extra lively amid the downtrend. Secondly, MAC_D talked about that staked ETH has elevated regardless of the decline in Ether worth.

Nonetheless, the analyst believes the autumn in worth suggests BTC and ETH have turn out to be undervalued. And in keeping with him, this presents a possibility for bullish traders to build up extra belongings in anticipation of the subsequent bull run.

This assumption should have prompted miners to extend their mining capability, growing the hash fee and problem. And knowledge from the on-chain analytics platform Glassnode helps these claims. 

According to Glassnode data, there was a slight enhance within the variety of BTC within the portfolios of mining companies. As of August 22, miners’ BTC holdings hovered over 1.83 million Bitcoin. This determine represents a 0.08% enhance from the worth initially of August.

Featured picture from Pixabay and chart from TradingView.com