Bitcoin mining

Increasing Bitcoin Mining Difficulty a Bullish Signal

There are many indicators of Bitcoin being in a bull run. One of them is the crypto’s mining difficulty. The crypto’s mining difficulty is at its highest levels, triggered by an entry of new miners. Recent Bitcoin mining data shows that the difficulty has risen to a high of 23.14 trillion, which is a 5.82% jump compared to the level it was at just over 10 days ago. This has also led to an increase in the prices of mining equipment.

At this point, the price of the Ant Miner S19 stands at $10k, multiple times what it costs a while back.  Industry analysts state that there has been a slowdown in delivering new Bitcoin mining hardware in the market recently, allowing those already mining to benefit from the exponential rise in prices. This is a big deal, as it points to the growing demand for Bitcoin relative to its amount that is entering the market.

Besides the increasing Bitcoin mining difficulty, multiple other factors point to the bullish nature of Bitcoin at the moment. One of them is the increased adoption of this cryptocurrency by institutional players. Institutional players that range from banks to investment funds are increasingly buying into it.

The most significant bullish signal were the moves by Tesla to invest in Bitcoin and the announcement that they would be accepting Bitcoin as payment for their vehicles. With all these factors coming together, it will be interesting to see how the market will play out in the near term.  New highs could be in the offing. 

Views and opinions expressed are solely those of the author and not of The DeChained or any affiliated party. Views or opinions expressed in this article (or any article on the website) are not financial advice. Articles are for informational purposes only. The author and The DeChained may hold positions in assets discussed in this or other articles.
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