In the crypto world, Bitcoin is a name that often comes up in discussions. Recently, the community has been discussing the news of actively adjusting the difficulty. According to Glassnode data, the difficulty of Bitcoin has been adjusted by +10%, reaching a record high of more than 180T.
Difficulty Adjustment | Source: Glassnode
This news is significant as it represents an exponential increase in hash rate over the past 2 years. Of the past 42 difficulty adjustments, 30 have been positive. This means that the hash rate of the network increases exponentially. This bodes well for the long-term condition of Bitcoin.
#bitcoin The difficulty hit a record high, breaking through 180T @azcoinnews https://t.co/pByV3ARnQw
— Kyptos (@azcoinnews) February 25, 2023
By analysis, the hashrate from public miners increases exponentially, which contributes to increasing the difficulty. The increase in hash rate is due to more and more miners joining the network and contributing their computing power to the Bitcoin blockchain.
However, not all Bitcoin-related news is positive. According to CryptoQuant data, weak hands are dumping BTC. These short-term holders “shot” after the announcement of the PCE price index to avoid price risks.
BTC sold by weak hands | Source: CryptoQuant
While short-term holders deciding to sell Bitcoin can reduce the selling pressure in the market, it also means that when it happens, the selling pressure is huge. Thus causing short-term price volatility and volatility in the Bitcoin market.
However, the positive difficulty adjustment and the overall growth rate of the hash rate suggest that Bitcoin’s long-term outlook remains very positive. Perhaps the crypto king will continue to rise after breaking out of short-term holder selling.
All in all, the Bitcoin community is closely following these developments. While short-term holder sell-offs may be concerning, the overall growth and development trend for Bitcoin is positive. As the network’s hash rate continues to rise, the long-term outlook remains strong.
- Justin Sun just staked over 150,000 ETH on Lido Protocol
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- Bitcoin hash rate up 82% year-over-year
Ming Ying
according to Kyptos
