Bitcoin network mining difficulty jumped to all time high value of 55.62T two days ago, as the network gets highest Hash Rate since in last four months. As per data by YTS Charts Mining difficulty spiked by 4.17% during the last adjustment to an all time high value. This means it is now more than ever difficult to mine bitcoin.
Mining difficulty is a paramenter that is indicative of how much hash power is vested by miners into the network. Bitcoin network auto adjusts difficulty every 14 days based on the network hash rate to keep the average block time to approx 10 minutes. Although this makes next block on the network more difficult to mine but it also makes network more secure and decentralized.
Despite the recent price decline more and more miners are plugged into the network taking the network hash rate to new heights. This indicates miners long term bullishness into Bitcoin prospects. With decrease in Bitcoin price and dying of BRC-20 tokens fomo, miners earning have plummeted significantly but still more and more miners are plugging in their machines into the network, indicative of the bullish sentiment.
Miners are more keen to hold on to the Bitcoin they mine. Data by Glasnode indicates miner's Bitcoin balance increased and reached 1 months highest value. Miners usually sell their mining receipts to pay for the mining expensives so miners holding on to the their earning means that they are more more keen on holding Bitcion earnings in anticipation of upcoming bulls run.
Moreover Bitcoin exchange inflows are also declining, again an indicative of bullish anticpation by Bitcoin holders as they are not planning on selling their holding in near future.
Viewing all above matrics in combination, it is not difficult to judge where bitcoin network is heading. Miners and holders are making adjustments and preparing to upcoming bulls season, which many believe might be the best one we have yet seen.
