By
Chimamanda U. Martha
April 26th, 2024
The rise in Bitcoin mining difficulty reflects an influx of new miners joining the network, indicating heightened interest in securing a portion of the remaining unmined BTC from the total supply.
The Bitcoin (BTC) network has reached a new pinnacle in its mining difficulty, setting an All-Time High (ATH) as it gears up for the upcoming halving event, scheduled to occur in just 26 days.
Bitcoin mining difficulty measures how hard it is for miners to solve complex puzzles and find a hash lower than the target set by the system in the Proof of Work (PoW) system.
Data Insight into Bitcoin Mining Difficulty
Data from the Blockchain.com explorer show that Bitcoin mining difficulty stood at 83,947,913,181,362 as of the last readjustment on March 21. This figure underscores the network’s ongoing hashrate growth, with the exception of brief downturns in mid-2021 and April 2022, following China’s crackdown on Bitcoin mining operations.
This rally in mining difficulty not only reflects the active participation of miners but also indicates a growing optimism among them regarding a potential price surge for Bitcoin. With just 26 days remaining until the halving, miners are intensifying their efforts to accumulate as much Bitcoin as possible before the block reward reduction.
The rise in Bitcoin mining difficulty reflects an influx of new miners joining the network, indicating heightened interest in securing a portion of the remaining unmined BTC from the total supply.
Miners’ anticipation of the upcoming halving event is driving extensive preparations across the board. The introduction of spot Bitcoin Exchange Traded Fund (ETF) products adds another layer of complexity, as the reduction in miners’ revenue from 6.25 BTC per block to 3.125 BTC may initially slow down mining activity.
However, given the anticipated supply shortage, this could potentially bolster the long-term growth of Bitcoin’s value. The impending supply-demand shift is viewed as a key driver for Bitcoin’s long-term price growth. As the halving approaches, some miners may struggle with the rising mining difficulty and opt to exit the market.
With electricity as the primary expense, mining companies are upgrading to newer, more efficient technology while relocating old computers to Africa and South America.
As reported by South China Morning Post, according to Ethan Vera, the Chief Operating Officer at Luxor Technology in Seattle, an estimated 600,000 S19 series computers, which make up a majority of the current mining machines, are being moved out of the US, with Africa and South America as the primary destinations.
Price Predictions Post Bitcoin Halving 2024 Event
The impending Bitcoin halving is generating anticipation for a potential bull run, a trend often associated with this event in the past. As the halving event approaches, there is optimism among bulls that it could once again catalyze a significant rally in Bitcoin’s price.
While some analysts, such as those at QCP Capital, are bullish and anticipate Bitcoin surpassing its previous all-time high of $73,000, others are more conservative, suggesting a potential retracement to around $50,000. This range of forecasts underscores the uncertainty in the market, particularly as major ETF issuers may adjust their accumulation strategies based on evolving market conditions.
When considering the Bitcoin ETF and other factors, Robert Kiyosaki, the author of “Rich Dad Poor Dad”, is among the optimists predicting that BTC could reach $300,000 by the close of 2024.
Bernstein, a leading research firm, has raised its Bitcoin price forecast from $80,000 to $90,000. The firm predicts Bitcoin could reach $150,000 in 2025, driven by ongoing positive momentum, especially after the SEC’s approval of several spot Bitcoin ETFs in January.
William Quigley, one of the co-founders of Tether, shared his bullish prediction for Bitcoin’s price during an appearance on CNBC’s ‘Squawk on the Street’. Quigley highlighted the increasing institutional and retail investment in the crypto market, emphasizing the fundamental analysis of money flowing into Bitcoin. He forecasted that Bitcoin could reach a staggering $300,000.
