Here’s why Bitcoin miners are bullish and what it means for BTC
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Loading... - Sandro Mayr
- 27 Feb 2023
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Bitcoin miners are engaged in an arms race for computing power. The recent recalculation increased BTC mining difficulty by 9.95%; miners are deploying capital to expand operations despite the spike. This reveals a bullish bias among Bitcoin miners and fuels a positive sentiment among BTC holders.
Bitcoin mining difficulty hits all-time high at 43.05 Trillion, here’s how miners reacted
Bitcoin mining difficulty represents the computational power spent on producing a single Bitcoin. BTC mining difficulty hit a new all-time high at 43.05 Trillion, according to data from Coinwarz. While mining difficulty does not influence price directly, a spike in difficulty requires higher energy consumption in mining one BTC and makes it expensive for miners to sustain profits. Miner profitability is affected by BTC mining difficulty.
When Bitcoin price rallies, mining profitability increases until the next recalculation, ie. mining difficulty adjustment. Despite the rising cost of mining BTC, miners are deploying higher capital and scaling operations. Uncertainty is associated with profitability since it relies on the asset’s price; miners have displayed a strong belief in operational efficiency and Bitcoin price rally in the future.
Co-founder of Group Bitcoin mining firm Xive, Didar, commented on the sudden spike in BTC mining difficulty. Read More…
