Bitcoin Mining Difficulty Hits Record High Ahead of Halving Event

As the Bitcoin network braces for its much-anticipated halving event, scheduled for April 19, 2024, the mining difficulty has soared to an all-time high, setting a new record at 86.39T, surpassing the previous peak of 83.13T observed on March 28, 2024, according to RBC.

This milestone comes at a critical juncture for Bitcoin, as the impending halving will slash miners’ rewards from 6.25 BTC to 3.125 BTC per block, fundamentally altering the economic landscape of mining operations. Such halving events, programmed into Bitcoin’s code, aim to reduce the rate of new coin creation, thereby influencing the cryptocurrency’s scarcity and potential value over time.

Experts from the Hashrate Index portal have projected a potential downturn in Bitcoin’s network hash rate, anticipating a decrease of 3-7% following the halving. This prediction hinges on the current market conditions, with Bitcoin’s price hovering around the $70k mark. A more dramatic drop in the hash rate, potentially reaching up to 16%, is forecasted should Bitcoin’s price fall to $48k or lower post-halving.

Amid these changes, Galaxy Digital projects a resilient future for the Bitcoin mining sector. With the advent of a new generation of mining devices and the expansion of mining capacity, there’s an optimistic outlook for a substantial increase in the Bitcoin network’s hash rate, estimated to surge by 35-45%. By the end of 2024, the network’s total computational power is expected to lie between 675 EH and 725 EH, reflecting the industry’s adaptability and ongoing evolution in the face of shifting economic incentives.