Bitcoin's mining difficulty has hit a record high of 95.67 terahashes (T). This represents a jump of 3.9%, according to data from Glassnode. This adjustment marks the 13th positive change in difficulty for 2024.
So, what does this mean? Well, mining difficulty tells us how hard it is to mine a new Bitcoin block. In 2024, there have been 22 adjustments to the mining difficulty, with 13 being increases. Overall, the difficulty has risen from 72T to 92T, which is a 27% increase this year.
The Bitcoin network adjusts its mining difficulty every 2,016 blocks, which is about every two weeks. This keeps the average time to mine a block around 10 minutes. The recent rise in difficulty coincides with a record hashrate, which has also gone above 700 exahashes per second (EH/s). Hashrate is the total computing power used for mining and processing transactions.
As the difficulty increases, miners face more challenges. It becomes tougher to turn a profit. This means they have to spend more on better equipment and technology.
Since the April halving, some miners have been selling off their Bitcoin. These are mostly smaller miners who find it hard to keep up with rising costs. After the halving, many of them unplugged from the network, causing a 15% drop in hashrate or started selling Bitcoin to cover their expenses.
Data from Glassnode shows that miner balances have been falling this year. Weaker miners anticipated the halving and tried to secure funds ahead of time. From November 2023 to July 2024, over 30,000 Bitcoin left miner wallets. This is one of the longest periods of distribution from miners on record. However, since July, balances have stabilized and even shown signs of accumulation. This suggests that the remaining miners are managing well in the current environment.
The mining industry is likely to consolidate, with stronger players gaining more control. Public miners now hold nearly 30% of the market share.
Historically, Bitcoin bull runs align with rising miner revenue. As prices go up, mining revenue tends to follow. According to Glassnode, the total dollar mining revenue on a 7-day moving average (7-DMA) has surpassed $35 million, which is over $10 million more than the low in September. Since the April halving, mining revenue has remained below the 365-simple moving average (SMA), which is currently around $40 million. Typically, when miner revenue exceeds the 365-SMA, it signals the start of a Bitcoin bull run.