What is established: mining difficulty on the Bitcoin network has stood at 148.4 trillion since October 29, the highest on record. Over three adjustments since September 19 it has risen 11.8 percent, while bitcoin traded at $77,657 on Monday afternoon, 4.4 percent below its level on September 19. Our assessment follows further down: the miners' higher costs are no floor under the price, but they are a reason for continued selling pressure from this group.
Anyone looking at the chart today sees a quiet week: $77,511 as the daily low, $78,740 as the daily high, down 0.7 percent from Monday's close. Behind this calm sits a mechanism that rarely features in market commentary and that matters right now. Where the price could head over a horizon of months is covered in our bitcoin price prediction. This piece looks at the part the chart does not show: the miners' economics.
Bitcoin mining difficulty rises for the third time in a row
Every 2,016 blocks, roughly every two weeks, the Bitcoin network resets its difficulty. On October 16 it went up 5.92 percent, and on October 29 by a further 5.54 percent. Before that, on October 3, the...
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