Bitcoin (BTC) Reaches New All-Time High As Ecosystem Grows and Adoption is Exploding
The Bitcoin mining difficulty has scaled from about 1.1E/s in 2026 to over 400 E/s in 2023 fueled by extremely high demand from institutional investors.
With about seven months to the fourth Bitcoin halving, miners are rushing to obtain more coins before the reward per block is slashed
As more investors around the world acquire more knowledge of Bitcoin and blockchain technology the overall demand has significantly increased. More governments are stepping in to control the extremely high greed to acquire Bitcoin to avoid the exploitation of investors like the FTX and Alameda Research situation that left millions of crypto users devastated. Interestingly, more investments have proliferated into the Bitcoin mining industry to develop green power sources to enable sustainable mining processes.
Moreover, long and short-term investors have accelerated the rate of Bitcoin accumulation in a bid to catch the bullish wave early enough.
The rising interest rates and the high global inflation have been a huge motivation factor to accumulate more Bitcoins.
Bitcoin Mining Hash Rate Spikes To ATH
The race to acquire Bitcoin through the mining industry has attracted top institutional investors led by BlackRock which has nearly $10 trillion in AUM. As a result, the overall Bitcoin mining hash rate has risen exponentially in the past few years amid high speculation in an already volatile market. In the past 24 hours, the average Bitcoin hash rate was about 388 Ehash/s, having risen from below 1 Ehash/s before the 2017 crypto bull rally.
However, Bitcoin’s profitability has significantly dropped in the last few years as more miners enter the highly competitive space. Moreover, the current Bitcoin mining difficulty is about 57.12 T, having scaled to its ATH in 2023. Notably, the Bitcoin mining profitability for 1 Thash/s was about $0.4 per day in 2021 but has since dropped to around $0.0631 in September of 2023.
The exponential rise in Bitcoin miners is a positive thing for the network that is helping secure billions of dollars and is expected to scale to trillions in the next decade. Further the more the miners mean the harder it is for the Bitcoin network to be compromised through the 51 percent attack.
Market Outlook and Price Action
Bitcoin price is expected to continue in a horizontal consolidation in the coming months until a breakout is secured above $32k. Meanwhile, Bitcoin bulls are struggling to push through $27.4k and reclaim the support zone between $28k and $29k. If the Bitcoin price action fails to hold at $27k as a support level, there is a high chance of price correction towards $25k or below.
If we end today still above the $26,800 level i will consider that successful for the #Bitcoin bulls. All comes down to the FOMC result pic.twitter.com/gujGOuZcwg
— Crypto Tony (@CryptoTony__) September 20, 2023
Meanwhile, Bitcoin dominance has steadily held around 50 percent as most altcoins struggle to pick up the bullish momentum. The outcome of the FOMC statements on Wednesday and the BoE interest rate on Thursday will have a significant impact on the Bitcoin price action in the subsequent days.
Filed under: Bitcoin - @ September 20, 2023 7:13 pm