Bitcoin mining difficulty reached a new peak just 2 months before halving

For the first time in history, the Bitcoin mining algorithm difficulty has surpassed the 80 trillion hash mark, showing that miners are still competing to mine BTC as the halving event gets closer and closer.

Bitcoin mining difficulty reached a new peak just 2 months before halving

After the latest adjustment at dawn on February 16, the Bitcoin mining algorithm difficulty increased by 8.24% to 81.7 trillion hashes, thereby setting a new record. 

Meanwhile, the average hashrate of the BTC network reached 545.04 EH/s, down slightly from the peak of 581.15 EH/s in early February.

Statistics of recent BTC mining difficulty adjustments. Source: BTC.com

BTC mining algorithm difficulty is a concept that refers to a self-regulating mechanism of the world's largest cryptocurrency network. Accordingly, every 2,016 blocks (about 2 weeks), the mining algorithm will be changed with the aim of maintaining block generation time around the target every 10 minutes. If the hashrate increases, indicating that there are many active miners, the system will increase the difficulty, and vice versa.  

Since mid-2023, Bitcoin mining difficulty has increased continuously from 51 trillion hashes and continuously set new ATH levels. This shows that cryptocurrency miners have increasingly focused on BTC in preparation for the upcoming important halving event.

Fluctuations in Bitcoin mining algorithm difficulty (green) and BTC price (black) since December 2020 until now. Source: Blockchain.com

Halvingis another Bitcoin automatic mechanism, designed to create deflationary pressure on this currency. Accordingly, after every 210,000 blocks, the amount of rewards generated from miners' block mining activities will be divided in half. During the next halving, the block mining reward will be reduced from the current 6.25 BTC to only 3,125 BTC.

Some observers even predict that at the current rate of growth, BTC mining difficulty could even reach 100 trillion hashes before the halving.

The fourth halving in Bitcoin's history is expected to take place around April 21, 2024 (Vietnam time), and is expected to open a new growth cycle for the cryptocurrency market.

Countdown to the Bitcoin halving event in April 2024. Source: Blockchair

However, Galaxy Digital's research shows that the Bitcoin network may lose up to 15-20% of its mining capacity after the halving, when miners switch equipment from old generation machines to new generations with higher performance. high, now BTC mining profits can no longer cover costs because block mining rewards are only half.

Bitcoin price since November 2023 has recovered strongly thanks toThe driving force comes from spot Bitcoin ETFs, and most recently soared to 52,800 USD - the highest threshold since December 2021, a month after the world's largest cryptocurrencyset ATH at 69,000 USD.