Bitcoin mining difficulty is set to rise by roughly 11% on Jan. 9, according to data from BTC.com. This marks the biggest increase in nearly four months that will put the metric over 20 trillion for the first time ever.
The network difficulty is a relative measure of how hard it is to mine a new block for the Bitcoin blockchain. With the hash rate currently at record levels, the difficulty adjustment, which occurs every 2016 blocks, makes sure that the time between blocks mined remains 10 minutes on average.
Since the halving in May, the total outflows of BTC from miners have been gradually decreasing on average. Hence, miners are still showing no signs of major selling despite the price of Bitcoin rising above $41,000 in the past week.
The Miners Position Index, which calculates the ratio of BTC leaving all miners wallets to its 1-year moving average, is currently at 4.5. This suggests that miners aren’t eager to part with their freshly-minted BTC at the moment, particularly as exchange BTC reserves plummet and the price is in a strong, accelerating uptrend.
Meanwhile, concerns of a “mining death spiral” continue to be disproven with every new network record as Bitcoin network fundamentals appear stronger than ever.
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