The Latest Bitfinex Report: Bitcoin’s Mining Difficulty Reaches New High
The most recent weekly report from crypto exchange Bitfinex has provided insights into Bitcoin’s mining difficulty and hash rate. Here are the key points from the report:
1. Mining Difficulty Reaches All-Time High: Bitcoin’s mining difficulty has hit a new peak of 55.62 trillion hashes. This metric represents the challenge of validating a new block and is a positive indicator for the Bitcoin network’s security against attacks.
2. Automatic Adjustment of Mining Difficulty: The Bitcoin protocol adjusts its mining difficulty every two weeks to maintain a consistent block generation time of around 10 minutes. The heightened difficulty suggests an influx of Bitcoin miners attracted by the block rewards and transaction fees.
3. Increasing Hash Rate: Bitcoin’s hash rate has also reached a new peak of approximately 414 terrahashes per second (TH/s). This surge of 60% since the start of the year demonstrates the network’s resistance to attack.
4. Accumulation of Long-Term Holders: Despite the recent plunge in BTC price, long-term holders continue to accumulate Bitcoin. However, supply metrics indicate overall market inactivity.
5. Expectations of Future Volatility: The market has not seen significant movements of coins despite the closure of over $2 billion in futures positions. Bitcoin’s volatility metrics are still low compared to historical standards, suggesting a slower recovery and potential future volatility.
In conclusion, Bitcoin’s mining difficulty and hash rate have reached new highs, indicating the network’s strength and security. However, market participants anticipate potential volatility in the future.
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