Bitcoin mining difficulty hits new ATH: What caused it?

Bitcoin’s mining difficulty jumped to all-time highs over the past week, reflecting miners’ confidence in the profitability of mining

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• Bitcoin’s network hash rate bumped to a 4-month high.

• Miners delayed selling their holdings due to their belief in the growth potential of BTC

  As per a post by on-chain analytics firm Glassnode, the network hash rate bumped to a 4-month high on 26 August. The previous 4-month peak was recorded more than a month ago on 7 July.

Miners switch on their machines

An increase in hash rate implied that more computational power was dedicated to validating the transactions and securing the network. The entry of more miners or use of more efficient machines generally leads to a spike in this metric. Overall, the increase is a healthy sign with regard to security and decentralization of the network.

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