Bitcoin (BTC) Mining Difficulty Hits All-Time High of 95.67 TH as Mining Revenue Rises; Signals Upcoming Bull Run

Bitcoin mining difficulty jumps 3.9%, hits 95.67T on Tuesday, amid record hashrate.

Bitcoin mining difficulty hit a record high on Tuesday, rising by 3.9% to 95.67 terahashes (T), amid all-time high hashrate.

According to Glassnode data, Bitcoin mining difficulty reached a new all-time high on Tuesday, hitting 95.67 terahashes (T) after a 3.9% increase. Mining difficulty serves as a measure of how challenging it is to mine a new block on the Bitcoin network.

So far in 2024, there have been 22 difficulty adjustments, with 13 being positive. As a result, the difficulty has risen from 72T to 92T, marking a 27% year-to-date increase. The network adjusts the difficulty every 2,016 blocks, which takes about two weeks, to ensure that blocks are mined every 10 minutes on average.

The recent surge in mining difficulty comes as the Bitcoin network hashrate also reached record highs, hitting all-time highs of over 700 exahashes per second (EH/s). Hashrate refers to the combined computational power used to mine and process transactions on a proof-of-work blockchain.

As difficulty increases, the mining industry faces more pressure to generate profits. This is because higher operational costs are incurred as more computational power must be invested in more efficient mining equipment.

Weak miners being purgedPart of the downward pressure on bitcoin, since the April halving, has come from unprofitable miners selling holdings. These miners, mainly small private miners, couldn’t sustain themselves due to higher costs. After the halving, these miners started to unplug from the network leading to a 15% decrease in hashrate or started selling bitcoin in order to fund operating costs.

Looking at Glassnode data, we see that miner balances dropped this year as weaker miners knew the halving was approaching and were trying to fund operations to get ahead of the game. From November 2023 to July 2024, we saw over 30,000 bitcoin leave miner wallets, one of the longest distribution periods from miners on record. However, we can now observe that since July, miner balances have been relatively flat and have shown signs of accumulation, telling us remaining miners on average can handle the new environment. The mining industry will continue to consolidate into stronger hands, with public miners controlling a record share of almost 30%.

Bitcoin bull run commencing soonBitcoin bull runs and surging miner revenue coincide; as price increases, so does mining revenue. Glassnode data shows that on a 7-day moving average (7-DMA), the total dollar mining revenue is over $35 million, an increase of over $10 million since the September low.

Since the halving in April, the mining revenue has been below the 365-simple moving average (SMA), currently priced at $40 million. Historically, once the total miner revenue climbs above the 365-SMA, this coincides with a bitcoin bull run, which has been seen historically.

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