Challenges Mount For Bitcoin Miners As Difficulty Surges To Record High
12 Settembre 2024 - 1:00PM
NEWSBTC
A recent report by Bloomberg highlights that the difficulty of
mining Bitcoin has surged to a record high, reflecting increasing
competition among cryptocurrency miners. On Wednesday, mining
difficulty rose by 3.5%, as reported by crypto-mining tracker
CoinWarz. This metric, which has been climbing steadily, often
aligns with market expectations for Bitcoin’s price movements.
Post-Halving Challenges Following the April Halving, which reduced
miners’ potential revenue by half, the Bitcoin price has dropped
approximately 10% to a current trading price of $57,000. Per
the report, this reduction has significantly pressured the profit
margins of many mining companies, particularly those operating at
higher costs. Christopher Bendiksen, Bitcoin research lead at
CoinShares, noted: The effect of the all-time high in
difficulty, right on the back of the Halving, is making the outlook
extremely challenging for many miners—especially those at the
higher end of the cost curve. The researcher added that if
current trends persist, some miners may struggle to remain cash
flow positive, let alone achieve profitability. Related Reading:
Polkadot Recovery Stalls As Bearish Pressure Returns With $3.5 In
Sight Miners play a crucial role in the Bitcoin ecosystem by using
specialized computers to validate transaction data on the
blockchain, thereby securing the network. In return for their
efforts, they earn Bitcoin rewards. However, the financial
landscape for miners has been tough this year; shares of major
publicly traded mining companies have plummeted, with Marathon
Digital Inc. and Riot Platforms Inc. experiencing declines of 31%
and 54%, respectively. In contrast, Bitcoin’s price has shown
consistency despite current challenges, climbing 38% and reaching a
record high of $73,798 in March, fueled by optimism surrounding the
demand for US exchange-traded funds (ETFs) that hold BTC.
Additionally, Bitcoin’s hash rate—the total computing power
supporting the network—hit an all-time high in September,
indicating strong participation in mining activities. Crucial
Months Ahead For The Bitcoin Market Historically, the Bitcoin price
has often dipped following its Halving event, only to rebound
several months later, eventually hitting new record highs. Many
industry participants are anticipating a potential rally in the
fourth quarter, with Bobby Zagotta, CEO of crypto exchange Bitstamp
USA, expressing optimism about market movements. However, Bendiksen
cautioned that many miners appear to be banking on a significant
price increase in Bitcoin. “If that fails to materialize, there
will be trouble ahead for some operators,” he warned. Related
Reading: Is Chainlink (LINK) $12 Breakout Imminent? Data Reveals A
Rising Open Interest The coming months will be crucial in
determining the sustainability of mining operations and the broader
health of the market, with expectations for further price
recoveries increasing in the latter part of the year, with other
potential catalysts including easing macroeconomic conditions and
the outcome of the US election. As of now, the largest
cryptocurrency on the market is down a slight 0.4% in the 24-hour
time frame, and nearly 2% in the last seven days, showing BTC’s
struggle to regain previously lost levels. Featured image
from DALL-E, chart from TradingView.com
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