TL;DR Breakdown
- Bitcoin mining difficulty set to rise above 20 trillion
- Miners are holding their BTC in hope of a continued bull run for the industry
The difficulty level attached to mining Bitcoin just increased by 10%. This was made known by BTC.com who showed that the level would increase to over 20 trillion. This also marks the biggest increase in Bitcoin mining in the last four months.
Bitcoin current hash rate has been increasing at around 148 EH/s and the difficulty level tends to increase whenever 2016 blocks have been mined. This increasing difficulty rate makes sure that the average time between every mined block remains at 10 minutes.
A popular trader on the crypto space, hodlonaut, had earlier highlighted that when the difficulty level of the leading crypto asset readjusts, it would be rising above the 20 trillion mark for the first in the history of the asset.
Generally, the difficulty metric is used to keep track of how hard Bitcoin mining can be.
Upon increased Bitcoin mining difficulty, miners are not selling
Despite the rising hash rate and the increased difficulty level attached to Bitcoin mining, miners have remained unperturbed as they have continued to put in more resources to invest in the network.
Since May last year when Bitcoin halved, the numbers of BTC outflows from miners have significantly dwindled. This is strange considering the fact that the value of Bitcoin had immensely grown since the beginning of the year, even cutting beyond the $40k mark.
Current Miners Position Index (MPI) also suggests miners should be selling as its data indicates the ratio of Bitcoin leaving miners’ wallets to be 4.5. Whenever the value of this ratio exceeds 2, it is expected that miners should be selling.
However, miners have remained reluctant to sell especially as the reserves of some crypto exchanges have begun to drop, and with the price still rising indicating an accelerating uptrend.
This could explain why they have not been selling as they may be looking to gain more benefits from the continued crypto industry bull run which some analysts have predicted would last all year long.
