Bitcoin Mining difficulty close to all-time high as it rises by 8.9%

Bitcoin mining difficulty increased by 8.9% in the latest development. The mining difficulty is over 4.4% away from reaching all time high.

By · Nov 30, 2020 . 5min read

Bitcoin Mining difficulty increases latest news

Bitcoin mining difficulty is reaching its all-time high (ATH) on November 30. Bitcoin’s network mining difficulty has increased by 8.9% today. In accordance with the on-chain crypto analytics firm Glassnode, Bitcoin’s mining difficulty is now just 4.4% below its all-time high. Bitcoin price sustains over $18,000 level.

The Bitcoin mining difficulty reduces the efficiency of mining of new Bitcoin. There will also be an increase in the number of unmined bitcoin trades. Moreover, the required time for creating new blocks will roughly increase. However, when Bitcoin’s mining problem began in 2013 and 2016, it also indicated the commencement of the bull cycle in the years as mentioned above. 

Bitcoin Mining difficulty may lead to an increase in transaction fees.

Moreover, the development in mining difficulty could also indicate more fees required from the users. According to estimates from Earn.com, the ideal BTC transaction fee is recently 14,272 satoshis, or approximately $2.60. Simultaneously with the development in transaction fees, there will be an improvement in the overall time needed to produce a block. 

Provided Bitcoin succeeded to climb over 4% in the past 24 hours; some analysts recommend that it was due to institutional investors removing the world’s largest cryptocurrency’s volatility. Last week, the leading cryptocurrency screened as much as 11% from $19,000 down to $17,000. This came between the massive sell-offs in the market. Various whale investors were placing a tremendous amount of the crypto on exchanges.

Recently, Guggenheim Partners LLC has sought to fund in BTC as noted in a US Securities and Exchange Commission filing on Nov. 27. Guggenheim’s potential investment in Bitcoin takes inspiration from leading investors. It involves Paul Tudor Jones and Stanley Druckenmiller, who have declared that they have funded in the world’s largest cryptocurrency. 

Moreover, not only BTC but the whole crypto market is undergoing a bullish phase. Ethereum has been witnessing high records recently and is approaching its all-time high. All the cryptos are highly bullish currently. However, we await to see whether it will be long-lived or short-lived.

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