Bitcoin's network activity is surging with a record-high hashrate, increased movement of long-dormant coins, and growing active supply driven by the impact of spot Bitcoin ETFs, indicating a maturing and more liquid market. The recent rise in active supply and the reactivation of previously lost coins suggest increased investor confidence and participation, while technical indicators hint at potential further gains.
Bitcoin mining difficulty slightly decreased from its all-time high, amid rising costs and hashrates that challenge smaller miners, while large public mining firms like Marathon Digital and CleanSpark expand operations and hoard Bitcoin, reflecting confidence in its long-term value.
Bitcoin's mining difficulty slightly decreased from its all-time high, amid ongoing challenges for miners such as reduced block rewards and rising operational costs. Despite this, some publicly traded mining companies like MARA and CleanSpark are expanding their Bitcoin holdings and operational capacity, shifting towards holding Bitcoin as a treasury asset rather than selling it to cover costs.
The upcoming Bitcoin halving is not expected to cause a major decrease in the network's hashrate, with a modest dip of 5 to 10% anticipated, followed by a quick recovery. High-cost miners may need to upgrade their equipment to maintain profitability, while others are exploring innovative strategies to increase profits. Some miners are diversifying away from mining, and the industry is becoming more geographically decentralized. The halving's impact on Bitcoin's price is expected to be minimal due to the already low issuance rate, with demand being the main driver of price surge.
The Bitcoin network has seen a 1% drop in difficulty, indicating a potential slowdown in miners' expansion as they prepare for the upcoming halving event, which will cut block rewards in half. The difficulty adjustment is designed to maintain a constant block production rate, and the recent reduction may be influenced by both the potential impact of the halving on mining profitability and the stabilization of BTC price.
