After 24 hours of losses, Bitcoin’s value has recovered and it is now trading above $46,000 as of this morning. Not only that, available information has also shown that it has now become much more difficult to mine the leading digital asset.
Per data from btc.com, the mining difficulty of Bitcoin has risen by 7.3 percent. The mining difficulty of BTC tends to automatically change after 2016 blocks have been mined —this takes approximately 2 weeks.
BTC’s mining difficulty had considerably dropped after China increased its hostilities towards the space. The authorities in the country had cited environmental concerns as why it was enforcing close downs of the mining facilities in the country.
The increased difficulty level shows that erstwhile offline miners who had been searching for new mining centers which they found in other countries like Kazakhstan, the United States of America etc. are now back online.
This, undoubtedly, has played a role in the much improved difficulty level. According to Jason Deane, an analyst at crypto advisory firm Quantum Economics, the hash rate levels are still down by 42.1 percent from a peak in May; hashrate levels are still down 42.1% from the peak in May 2021 when the China exodus happened, Deane said.