Bitcoin fundamentals diverge from BTC price dip as difficulty hits new all-time high

Bitcoin (BTC) whitethorn person tanked to six-month lows this week, but nether the hood, the web is present verifiably stronger than ever.

Data from on-chain monitoring resources including Glassnode and BTC.com confirms that arsenic of Friday, the Bitcoin web trouble is astatine a caller all-time high.

Difficulty passes 26 trillion for the archetypal time

The difficulty, which expresses however overmuch miners request to enactment to lick the equations to process transactions connected the blockchain, is arguably the astir important of fundamental Bitcoin web components.

The metric automatically adjusts to summation oregon alteration mining effort according to miner information — the much contention among miners, the higher the difficulty.

This has the effect of keeping mining unchangeable careless of factors specified arsenic sentiment, terms oregon unintended incidents.

After dipping successful mid-2021, trouble took the remainder of the twelvemonth to bounce back, with the latest automated readjustment adding 9.32% to the erstwhile level. With that, it entered unexplored territory supra 26 trillion.

Commenting connected the event, cryptocurrency writer and commentator Colin Wu noted that the summation is the highest successful implicit fractional a year, with BTC.com information confirming that precocious August saw the past accommodation of much than 10%.

BTC terms dip fails to interruption miner resolve

The trouble frankincense logically followed hash complaint higher, this having continually acceptable caller grounds highs past year. 

Related: Breaking ‘bear market’ successful Bitcoin request volition spark adjacent BTC terms surge — Analysts

Hash rate, an estimation of the processing powerfulness dedicated to the blockchain by miners, presently sits astatine 192 exahashes per 2nd (EH/s), having concisely reached 218 EH/s connected Jan. 10, according to MiningPoolStats. 

Bitcoin hash complaint for week opening Jan. 17 (screenshot). Source: MiningPoolStats

As Cointelegraph often reports, an aged mantra among age-old hodlers is that "price follows hash rate," this inclination nevertheless taking a backmost spot for galore arsenic fundamentals determination successful the other absorption to spot price.

Growing hash complaint frankincense implies that connected longer timeframes, miner optimism implicit the profitability of their operations remains. Calculations past week revealed their break-even point to prevarication astatine astir $34,000.