Bitcoin News Today: Bitcoin Mining Difficulty Surges 9.1% Amid Rising Network Competition

Bitcoin's mining difficulty reached a record high of 127.6 trillion this week, reflecting an ongoing expansion in the computational power supporting the network. This adjustment follows a biweekly recalibration mechanism that ensures consistent block issuance despite fluctuations in mining activity. The average block time has slightly increased to 10 minutes and 20 seconds, exceeding the 10-minute protocol target [1].

The surge in difficulty marks a reversal from June, when the metric fell to 116.9 trillion. The latest increase coincides with a resurgence in miner activity and growing competition within the mining sector. Despite these challenges, miner profitability has unexpectedly risen to a post-halving high of $52.63 million per exahash per day [1]. This divergence between difficulty and profitability has led some experts to speculate that Bitcoin may be entering a new phase, potentially driven by either sustained price strength or improvements in mining efficiency [1].

The rising difficulty also contributes to Bitcoin’s elevated stock-to-flow ratio, currently estimated to be twice that of gold. This metric underscores Bitcoin’s inherent scarcity and resistance to inflation, particularly as approximately 94% of its total supply has already been mined. The difficulty adjustments help maintain consistent issuance while preventing overproduction, insulating the asset from the devaluation risks faced by traditional commodities [1].

Meanwhile, Bitcoin dropped around 4% over the past week amid heightened geopolitical tensions between the U.S. and Russia. Increased selling pressure pushed prices lower, but the cryptocurrency is now approaching a key support zone, which analysts view as a potential stabilizing factor in the near term [1].

CryptoQuant noted that the market structure remains fundamentally bullish, driven by the continued confidence of long-term holders (LTH). The Net Unrealized Profit/Loss (NUPL) metric for LTHs remains above 0.5, indicating that this group holds significant unrealized gains and is unlikely to sell. This resilience provides a strong foundation for Bitcoin’s price, which has stabilized near the $104,000 level [1].

Short-term holders (STH), however, are operating near breakeven, making them more prone to selling during upward price movements. This dynamic could introduce short-term volatility, but CryptoQuant emphasized that the broader trend remains intact, with long-term accumulation continuing to fuel momentum [1].

Sources:

[1] https://coinmarketcap.com/community/articles/68907eb9bcd39c77ce70bb45/