After moving sideways for a long time, Bitcoin broke this trend downwards and fell to $25,000.
While the search for direction in BTC and cryptocurrencies continues, a new record came from the BTC mining difficulty.
According to data from BTC.com, Bitcoin mining difficulty rose 6.17% on August 22, reaching an all-time high of 55.62 trillion hashes.
With the difficulty, it was seen that the hash rate of Bitcoin increased. This rate reached 403.14 EH/s.
What is Bitcoin Mining Difficulty?
Bitcoin difficulty is an automatically adjusted property that determines how difficult it is to mine a Bitcoin block.
The mining difficulty of the Bitcoin network changes every 2,016 blocks and is automatically updated. The reason for this is to keep the average block production time as 10 minutes.
There is no close correlation between BTC price and Bitcoin mining difficulty and hash rate. Increasing difficulty in the Bitcoin network makes the network more secure and increases competition among miners.
At the same time, as the difficulty increases, so do the work, costs and risks that miners have to do to get the same reward.
Miners work harder to get the same payout. The higher the costs at this point, the higher the amount of BTC miners have to sell to cover those costs.
The more Bitcoins are sold in the market, the more the demand stays the same (or lower), the more negatively the price can be affected by the extra supply.
*Not investment advice.