The average number of Bitcoin miners selling their coins continues to gradually decrease.
The difficulty to mine Bitcoin (BTC) will increase by about 11% on January 9, according to data from BTC.com. This is the largest increase in nearly four months, which will take the metric above 20 billion for the first time in history.
„Hashrate is on a roll,“ the popular Bitcoin Loophole using Hodlonaut commented three days ago. „When the difficulty resets in 3 days, it will reach 20 billion for the first time in Bitcoin history.“
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Bitcoin’s network difficulty reaches 20 billion
Network difficulty is a relative measure of how difficult it is to mine a new block for the Bitcoin blockchain.
With the hash rate currently at a record high of around 148 EH/s, the difficulty setting, which occurs every 2016 blocks, ensures that the time between mined blocks is kept to an average of 10 minutes.
Bitcoin network difficulty
Miners are still on the rise
The simultaneous increase in hash rate and mining difficulty suggests that miners are still allocating a record number of resources to securing and investing in the network.
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Total BTC spending from miners‘ addresses.
Since halving in May, total BTC outflows from miners have gradually decreased on average, in contrast to the bitcoin price. Miners still show no signs of significant turnover, although the bitcoin price has risen to over $41,000 in the last week.
Furthermore, the Miners‘ Position Index (MPI), which calculates the ratio of the amount of BTC coming out of the pockets of all miners to their 1-year moving average, is currently at 4.5, with values above 2 indicating that most miners should be selling.
This suggests that miners are not eager to part with their newly minted BTC at the moment, especially as bitcoin reserves on exchanges are slumping and the price is in a strong and accelerating uptrend.
As a result, it may make sense for some miners to hold on to their holdings and take advantage of the accelerating bull market, which some forecasts suggest could last until December 2021.
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In the meantime, concerns about a „death spiral for mining“ continue to be refuted with each new record set on the network, as the fundamentals of the Bitcoin network appear to be stronger than ever. Overall, bitcoin miners appear to be in a financially secure position due to the rising bitcoin price and remain financially secure despite mining BTC being more difficult than ever.
Currently, each Bitcoin block mined is worth about $253,600, and about 9.44% comes from network transaction fees, according to the latest data from Clarkmoody.