bitcoin (BTC) may be struggling to $30,000, but under the hood, all-time highs of a different kind keep coming.
The latest data shows that Bitcoin network fundamentals (difficulty and hash rate) will hit new records this week.
Bitcoin mining difficulty, hash rate refuses to go down
Bitcoin's rally in 2023 has been about more than just BTC price action, and miners have seen a significant turnaround of their own.
As BTC/USD added 70% in Q1 alone, pressured mining participants saw some much-needed relief after the bear market reduced profit margins to virtually zero.
The return of mining companies is evident in the difficulty, which among other things reflects the competition for block subsidies.
This has reached new all-time highs in the last two months, and this week will be no exception. According to data from BTC.comthe difficulty will increase by approximately 2.1% on April 20, reaching 48.91 trillion.
The dizzying tally is 13 trillion higher than it was at the start of the year alone.
Furthermore, the hash rate of the Bitcoin network is also estimated to be higher than ever, with raw data from MiningPoolStats recording a new all-time high of 418 exahashes per second (EH/s) on April 18.
As Cointelegraph reported earlier this week, hash rate estimates are far from concrete and it can be misleading, as there are now calls to reassess how it is measured and reported by those looking to draw bullish conclusions about BTC's price strength.
However, as the old adage goes, โprice follows hash rateโ, and some commentators continue to watch the metric closely as it gets higher and higher.
A key focus is Russia, ramping up mining activity over the past year to reportedly become the world's second-biggest miner by 2023, according to a report by Russian-language news outlet Kommersant.
Although this has led to concerns While governments with a majority hash rate could put pressure on miners to censor transactions, others believe that the real "danger" is using that hash rate for its intended purpose: earning Bitcoin.
โAdversaries hypothetically using hashrate to censor #btc transactions is a distraction from adversaries actually using hashrate to earn #btc revenue,โ Pierre Rochard, VP of Research at Riot Platforms, wrote in part from a recent commentary on the subject.
Bitcoin miners still do not accumulate BTC
Meanwhile, a look at the current state of miner balances shows that, on a rolling 30-day basis, BTC sales are increasing.
Related: What is the Bitcoin hash rate and why is it important?
On April 18, miners reduced their Bitcoin holdings by 648 BTC compared to a month ago. according to Glassnode data.
The changes are significant compared to the sell-offs that accompanied the FTX implosion in the fourth quarter of last year.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
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