Five months after the start of the largest-ever migration in Bitcoin history, the fundamentals of the network have made a significant recovery. As miners moved and re-started their operations, the recovery in hash rate and network difficulty has progressed in leaps and bounds, and it is now reaching a tipping point.
Despite the fact that it is hard to quantify in absolute terms, the hash rate seems to have been responsible for the whole China fiasco, having more than doubled from its low point many months ago. Similarly, the mining difficulty is expected to rise by 5.7 percent next week, placing it within 4 trillion dollars of its previous record high of 25 trillion dollars.
Not only that, but Bitcoin will also see its eighth consecutive difficulty rise, marking the first time this has happened since the beginning of 2018. “Only six other days in history have had a greater hash rate than today,” Charles Edwards, founder of investing firm Capriole, noted in the accompanying remarks.
Hash rate has only been higher than today on just 6 other days in history. We are knocking on new all time highs in network security. That’s kind of unbelievable.#Bitcoin is Hydra pic.twitter.com/zRPuc7nMLb
— Charles Edwards (@caprioleio) October 27, 2021
“We’re banging on the door of new all-time highs in network security,” says the author. “It’s almost incredible how fast time has passed.”
Miner Revenue ➗Hash Rate:
This shows the cost to produce a marginal unit of BTC per hash.
Testing blue trendlines as resistance has coincided with peaks in price.
Will we see something similar again? pic.twitter.com/La1UbNxTL5
— Nunya Bizniz (@Pladizow) October 27, 2021
Bitcoin has gained 50% since the beginning of May, and reports suggest that China is beginning to regret its decision to ban the cryptocurrency. Meanwhile, additional data analysis has called into doubt the long-term viability of the present Bitcoin price movement.
Following a drop in the value of bitcoin against the dollar to $58,000, numbers covering miner expenses suggested a likely local peak based on past trends. Mining operations have been slow to sell their currencies in recent months, a pattern that is expected to continue in the future.