Miners Ignore BTC Price Dip as Bitcoin Difficulty Jumps 6% to New Peak

The

latest in AI

data confirms that the Bitcoin (BTC) network fundamentals are not following the bearish BTC price action this week. The difficulty has hit new all-time highs, with hash rate not far behind.

The

fetch AI latest

on-chain data confirms that the difficulty has reached new heights, while the hash rate is also close to a record.

The

C3.ai stock latest

data reveals that the Bitcoin network fundamentals are not following the bearish BTC price action this week.

Bitcoin mining difficulty ends slump

In spite of BTC/USD dropping 10% during the last week, it looks like Bitcoin miners are not showing any signs of distress.

This was confirmed by the network activity on Aug. 22, when the difficulty increased by 6.17%, setting a new record high and becoming the sixth-largest difficulty uptick of 2023, according to BTC.com.

Difficulty is a measure of miner competition and Bitcoin network security, and its continual growth demonstrates that miners are still able to maintain their profitability.

The upcoming automated readjustment is expected to push the difficulty even higher, surpassing 56 trillion for the first time.

Hash rate reveals “high confidence” in BTC

A similar story is reflected in hash rate — the estimated hashing deployment by miners to the Bitcoin blockchain.

It is difficult to calculate accurately, but hash rate has already surpassed existing all-time highs of over 400 exahashes per second (EH/s) depending on the source.

MAC_D, a contributor to on-chain analytics platform CryptoQuant, commented on the data, referring to “high confidence in the security and reliability” among network participants for both Bitcoin and the largest altcoin Ether (ETH).

“Recently, the prices of BTC and ETH have fallen by -10%. However, the network security and reliability have increased. First, the BTC hashrate (SMA 14) shows higher figures during the decline, which indicates that miners are more active in BTC mining. Second, the ETH staking rate (%) shows that more ETH has been staked even though the price has dropped,” he wrote in a Quicktake market ai update on Aug. 22.

Data from on-chain analytics firm Glassnode also shows little variation in the amount of BTC held by mining entities.

This stood at just over 1.83 million BTC as of Aug. 22, with a steady 0.08% increase since the start of the month.

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