The mining difficulty for Bitcoin reached a record high of 37.59 T, a 10.26% increase, at block height 772,128 during the ongoing price rally. Additionally, the average hashrate for the entire network is now 269.02 EH/s, according to the data from BTC.com.
The price of a Bitcoin had peaked at a record high of $65,000 by late 2021. This spectacular rise in the value of the cryptocurrency was quickly followed by a steep 70% plummet, significantly affecting the burgeoning crypto mining industry.
As reported by TronWeekly, the Hashrate Index’s analysis of publicly traded Bitcoin mining firms showed that they owe more than $4 billion. Due to its overwhelming financial burden, the largest of them has already declared bankruptcy in 2022.
Upcoming Difficulty Looms A Concern for Bitcoin Miners
A recent report by Hashrate Index shows that only two weeks into the new year, the hash price is already on the rise. However, miners should be aware of the upcoming difficulty adjustment, which is expected to be the largest since Q4-2022.
Despite this potential challenge, the current high hash price is a positive sign for miners as they exit a difficult year. Only time will tell if this trend will continue for the next 11 and a half months.
As Bitcoin’s value surpasses $20,000, the hashrate has also seen a significant increase, reaching levels not seen since early October 2022. With a 23% increase over the past week, bringing the hashrate to $77/PH/day, the hashrate chart appears to be on a steady upward trajectory, similar to a quarter pipe in a skatepark.
According to the report, the hash price on the rise after reaching low levels in 2022 won’t continue for long due to a change in the difficulty level. This adjustment, which is increasing by 9-10%, hasn’t happened since October 10, 2022, and it will wipe out most of the recent gains made by hash price.
Moreover, the report also revealed that after a tough period in late 2022, the stocks of companies involved in Bitcoin mining are off to a great start in the new year. Additionally, as the value of Bitcoin continues to climb, the stock prices of these companies are also experiencing a significant surge. The Index that measures their performance has seen an impressive 32% jump.