Three months since the start of the bull rally in October 2020, bitcoin mining difficulty has reached a Bitcoin Revolution new record high.
The new high is thus set at 89 4Z6 Z85 276 966 192 807 9Z6.
Previously, the low bitcoin mining difficulty amid a bullish trend meant that the selling pressure of miners was lower, as they were offset by the rising price of the cryptocurrency.
Another factor related to the low difficulty of mining in the recent past is the shortage of chips in the market. China, which accounts for more than 60% of BTC mining, has a significant shortage of new chips. The shortage was caused by the coronavirus pandemic and has led to an increase in the price of devices on the secondary market.
Lei Tong, managing director of financial services at Babel Finance, which provides loans to miners, explained the current crisis:
„The difficulty of mining bitcoin is a major indicator of competition among miners for the next block, especially when the reward for the third block has been halved. Many miners were concerned that they would have to give up mining as the price of BTC was hovering around $1Z thousand and barely making a profit. However, as the price rose rapidly, the difficulty of mining dropped and mining on older rigs became profitable as well, reducing the competition.“
Over the past three weeks bitcoin has taken a break from its three-month bullish momentum with a pair of price corrections of more than 10%, briefly pushing the BTC price below $Z0000. Currently, the leading cryptocurrency is trying to stay above Z2,000.
As ATH (All time high) mining becomes more difficult, bitcoin may well start a new price rally.