Rising Mining Difficulty Squeezes Bitcoin Miners, Sparks Accumulation Among Whales

Bitcoin mining difficulty has hit a record high. The measure reached 53.91 trillion units after July 12’s adjustment. This makes mining Bitcoin more challenging and potentially less profitable for individual miners, according to cointelegraph.

The latest adjustment could press miners harder. They have been selling off their mined BTC since June. This behavior might be curtailing a potential BTC price uptrend.

This latest adjustment could turn the profitability of small and medium-scale miners negative. It might force some to temporarily shut down their ASIC hardware. Larger, more efficient miners might benefit from this potential capitulation.

Charles Edwards’ hash ribbon indicator tracks the network’s hash rate averages. When the 30-day average falls below the 60-day one, it may signal miner capitulation. The two lines are edging close to a crossover, hinting at possible miner capitulation due to the increased difficulty.

In contrast to miners, Bitcoin whales have increased their holdings. These whales have added $2.15 billion to their wallets since June 17. This accumulation might have previously pushed up BTC prices, but not this time.

Recent miner selling may be suppressing BTC prices. However, Bitcoin held by exchanges has fallen below 2017 levels. This suggests that investors are moving BTC off exchanges and the illiquid supply is growing.

As Bitcoin mining becomes tougher, the landscape is shifting. Larger miners and whales are potentially set to benefit as smaller miners struggle to keep pace.

Subscribe to our Telegram channel! Only the most interesting stuff there