The price of Bitcoin has once again stabilized above $18,000 after reaching a two year high of more than $19,000 with mining difficulty approaching an all time high (ATH).
Mining difficulty on the Bitcoin network has risen by 8.9% as at today while the present hash rate is more than 130 EH/s.
See Also: Insights on Ethereum 2.0
The price of Bitcoin fell by more than 10% last week as a number of Bitcoin whales moved most of their holdings to cryptocurrency exchanges.
Glassnode, an on-chain analytics provider has stated that Bitcoin mining difficulty has increased by 8.9% today and it is now 4.4% below its ATH. The bull cycles of 2013 and 2016 was first spearheaded by a rise in mining difficulty.
#Bitcoin mining difficulty increased by 8.9% today.
It is now only 4.4% below its ATH.
Chart: https://t.co/qtmuDmTfGS pic.twitter.com/1eX63yBAgc
— glassnode (@glassnode) November 29, 2020
A rise in mining difficulty can also directly translate to an increase in fees for users and the time required to generate a block.
Glassnode has also reported that mining difficulty for the Ethereum blockchain has also increased reaching a two-year high as at Friday last week when ETH fell more than 9%.
📈 #Ethereum $ETH Mining Difficulty just reached an ATH of 3,719,917,244,648,520
Previous ATH of 3,696,664,670,930,580 was observed on 04 August 2018
View metric:https://t.co/s9t4z9o8ba pic.twitter.com/qiy158HVV3
— glassnode alerts (@glassnodealerts) November 27, 2020