Bitcoin’s struggle continues to witness new days & nights within the cryptocurrency market. While investors worried about losing savings amid price corrections, Bitcoin might have resorted to another approach to deal with the plunge.
Bitcoin recorded its worst performance in August sessions since 2015, following a monthly candlestick closing 14% down. While publishing this blog, Bitcoin plummeted beneath $20K during this publication. The bellwether crypto trades near $19.9K. BTC painted red in its 7d picture.
Considering the free fall, most analysts have forecasted bearish biases to alert $BTC enthusiasts. For example, Crypto Tony stated that BTC would likely record losses in the coming sessions.
Furthermore, the mentioned dip even witnessed massive liquidations within the Bitcoin spot market. That means investors began trimming their balances. However, not everyone resorted to a similar approach.
Path Less Traveled
Surprisingly, miners didn’t surrender on BTC, despite mining difficulty hitting significant highs. Bitcoin welcomed a mining difficulty modification around the 751,968 block height. Moreover, the mining difficulty saw a significant 9.26% surge to 30.98T.
Data from BTC.com indicated that it was the highest upside difficulty adjustment since early this year. Furthermore, this number reflects a 9.26% jump since August 18, when mining difficulty hovered at 28.35 trillion.
Mining difficulty measures the hurdles for miners to verify transactions and introduce new blocks to the blockchain. Few miners see the metric dropping and vice versa.
Ergo, a rise signals the sheer demand. The computing power needed in mining (hashrate) also surged, hiking to 224.25EH/s from 202.76 EH/s in that timeframe.
What Does It Imply?
Well, hashrate and difficulty soar indicate confidence by miners in long-term profitability from their participation. The conviction came when miners didn’t enjoy profitability.
According to BitInfoCharts, mining profitability declined consistently since August 18, when it hovered at $0.109 terra hash per second.
While publishing this content, the profitability declined to only $0.082. That remains a concerning sign when combined with Bitcoin’s price plunge.
Prices plummeted by 17% within one month and 60% in one year. Meanwhile, the question lingers, can these miners tolerate such losses and extend their operations? Time will tell.