Bitcoin mining difficulty recently hit a new high, even as the coin struggled to overcome the $30,000 resistance mark.
This is because the price recovery has attracted more interest from miners since the beginning of the year. Bitcoin mining difficulty automatically adjusts every 2016 blocks to maintain the 10-minute block creation time, and the difficulty has steadily increased over the past few weeks, with the last downtrend recorded on February 11.
Higher mining difficulty can lead to a lower hash price, which is the percentage of profit miners earn for the hashrate they provide to the Bitcoin network.
The average hash rate for about two weeks since the last recalculation was also a record 342.16 EH/s. According to Glassnode, the 7-day smoothed moving average peaked above 350 EH/s before correcting to levels around 340 EH/s.
This happens because more miners compete for the rewards offered to those who produce new blocks on the network. However, Bitcoin’s hashrate has dropped by an average of 20 EH/s this week, although the stats may vary by source.
One of the main reasons for the increase in mining problems is the bull market, with Bitcoin increasing in value by more than 50% since the beginning of 2023.
This positive trend has led many miners to rewire their equipment after a rough 2022. However, the mining industry is struggling, with stricter regulations in places like Texas in the United States that could soon affect the booming industry.
In terms of pools, Foundry USA has a confident lead with a 34.31% share of the total hashrate. Next in the ranking is AntPool – 18.96%. These two companies control more than 53% of the network’s computing power.
Since the start of the year, the difficulty has increased by 35.4%, putting pressure on bitcoin mining profitability. So the Cryptocurrency recovery boosted miners’ profits.
Source: Live Coins

Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.