Bitcoin (BTC) Mining Difficulty Hits All-Time High (ATH) Despite Reduction in Miners’ Profits

Within the last 24 hours, Bitcoin mining difficulty increased by 3.04% to hit an All-Time High (ATH). The rise in Bitcoin mining difficulty comes amid a sizable reduction

Bitcoin mining difficulty hit an all-time high (ATH) on Monday amid a seven-day rise in the metric and a sizable reduction in miners’ profits.

The difficulty rose by 3.04% in the last 24 hours to reach 92.67 trillion, according to CoinWarz. It was adjusted at block height 860,898.

The difficulty adjustment aims to ensure that a new block is discovered every 10 minutes on average, irrespective of the number of miners actively participating.

Bitcoin mining difficulty determines the level of effort required to mine the next block. It is adjusted every 2,016 blocks, roughly every two weeks.

The latest increase comes as the Bitcoin hash rate also set a new seven-day moving average ATH of 693.84 EH/s on Sunday.

Miners have collectively ramped up their hash rate despite experiencing a difficult time following the Bitcoin halving event in April.

During the event, miner rewards were slashed from 6.25 BTC to 3.125 BTC. However, seven-day moving averages of the hash rate began to recover.

After bottoming out at 550.25 EH/s on June 28, surviving miners have upgraded their mining rigs and capacity, contributing to the total hash rate.

Meanwhile, Bitcoin mining was less profitable in August than in July, according to a research report by investment bank Jefferies.

The report noted that the average Bitcoin price fell over 4%, while the average network hash rate rose about 2.7% during the period.

As a result, the miner's average daily revenue per exahash dropped by 11.8% from the previous month.

In its last report, investment banking giant JPMorgan stated that mining profitability fell to all-time lows in the first two weeks of August.

Jefferies analysts Jonathan Petersen and Joe Dickstein said that September could be another difficult month for the Bitcoin miners.

Their prediction is based on the觀察Bitcoin’s price, which is currently stagnant below $60,000, and the surge in the network hash rate.

However, there is a long-held notion that Bitcoin’s price directly correlates with mining difficulty, which could indicate a bullish momentum in the network.

Moreover, a higher hash rate indicates a more secure network, which could further boost Bitcoin’s price.

At the time of writing, Bitcoin was trading for $57,600, up by 0.7% in the past 24 hours.

The cryptocurrency's trading volume increased 18.4% in the past day to $37,336,760,658.