Bitcoin miner profits: on the rise
The Bitcoin Difficulty Adjusted Puell Multiple indicator recently broke above 1, which could mean increased profits for miners, less selling pressure and more stability for the Bitcoin market.
This indicator shows the ratio of the USD value of new bitcoins issued during the day to the one-year moving average. A reading above 4 indicates that bitcoin is overvalued, while a reading below 0.5 indicates that it is undervalued. (Source: Cryptoquant).
Currently, the Powell multiple is above its 365-day moving average for the first time since November 2020, signalling a bullish shift in bitcoin’s price.
According to Glassnode, the bitcoin hashrate has reached 500 EH/s in recent days, the first time the hashrate has breached this level. This is also the fourth consecutive positive correction in which the hashrate has risen in recent months.
Bitcoin Mining Difficulty
On the 30th of October, the Bitcoin mining difficulty increased by 2.35% to reach a new all-time high. The current bitcoin mining difficulty is 62.46 T. According to BTC.com, this is the fourth consecutive increase, and the average bitcoin hashrate at the current difficulty is expected to be 449.68 EH/s. This surpasses the previous high average hashrate of 436.89 EH/s on 16 October. The last difficulty adjustment was on the 16th of October and reached 61.03 T.
The next mining difficulty adjustment is expected on 13 November 2023 and is predicted to increase by 0.39% according to BTC.com. This increase in the mining difficulty and hashrate of the Bitcoin network is a sign that more and more miners are participating in mining this leading cryptocurrency. At the same time, the price of bitcoin has risen by 108% since the beginning of the year, from $16,500 to $34,400. The increase in mining difficulty is expected to bring us closer to the next halving event, which is expected in April 2024.
“The hashrate of listed miners accounts for 27% of the bitcoin hashrate, up 10 percentage points from 17% in January 2022,” said Yaran Melood, analyst at Hashrate Index, according to WuBlockchain.
“After the BTC halving, the share of the BTC hashrate held by large companies will also continue to grow as well-capitalised listed miners buy up the assets of struggling private miners,”
Yaran Melud explained.
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