An increase in mining difficulty highlighted the beginning of bullish rallies in 2013 and 2016, though time will show whether the numero uno crypto’s latest sure to within 3% of its historical high is bullish in the long-term.
The price of Bitcoin declined 11% a week before as several whales shifted a portion of their possession to exchanges.
#Bitcoin mining difficulty increased by 8.9% today.
It is now only 4.4% below its ATH.
Chart: https://t.co/qtmuDmTfGS pic.twitter.com/1eX63yBAgc
— glassnode (@glassnode) November 29, 2020
An increase in mining difficulty implies a rise in fees for users and the time necessary to create a block along with a growing number of unconfirmed transactions in the mempool of Bitcoin. As per the data provided by Earn.com, the most competitive Bitcoin transaction charge is 14,272 satoshis (~$2.60).
The Ethereum (ETH) blockchain has also witnessed record highs in recent times. Data provided by Glassnode also indicated that mining difficulty for the network stood at a two-year high after the token’s price declined to $513, from $600 on November 23.
The hash rate of the Bitcoin network, a measure reflecting the level of computing power dedicated to authentication of Bitcoin transactions, plummeted soon after the hash rate and mining complexity hit an all-time-high in October.
? #Ethereum $ETH Mining Difficulty just reached an ATH of 3,719,917,244,648,520
Previous ATH of 3,696,664,670,930,580 was observed on 04 August 2018
View metric:https://t.co/s9t4z9o8ba pic.twitter.com/qiy158HVV3
— glassnode alerts (@glassnodealerts) November 27, 2020
Data from Blockchain.com indicates the metric declined over 27% between October 17 and November 2, from 146.50 EH/s to 106.60 EH/s. As per BTC.com, Bitcoin’s hash rate is currently 130.15 EH/s.
At the time of writing this article, the price of Bitcoin was trading at $18,856.65, reflecting a gain of 4.6% in the last 24 hours.