Bitcoin hits all-time high network difficulty amid price volatility

Bitcoin (bitcoin) network recorded a new all-time high mining difficulty of 26.643 trillion, with an average hash rate of 190.71 exahash per second (EH/s) – a sign of strong community support despite the ongoing bear market.

The difficulty of the Bitcoin network is determined by the overall computing power, which is related to the difficulty of confirming transactions and mining BTC.As proven by blockchain.com data, network difficulty drops between May and July 2021 for various reasons Total ban on cryptocurrency mining from China.

BTC network difficulty. Source: Blockchain.com.

However, network difficulty has recovered sharply since August 2021 as displaced miners resume operations from other countries. Thus, on January 22, the BTC network recorded 26.643 trillion ATH.

data Estimates from BTC.com suggest that the network will continue to grow stronger in the next 12 days by gaining another ATH – a network difficulty of 26.70 trillion.

Estimated BTC network difficulty over the next 12 days. Source: BTC.com.

In the past four days, Fish Pool contributed the most computing power with 88 BTC blocks, followed by Mining Pool with 76 blocks. As of yesterday, the average fee per transaction was around $1.58, a value that had reached an all-time peak of $62.78 in April 2021.

related: Bitcoin May Outperform Stocks in 2022 Amid Fed Tightening – Bloomberg Analyst

Despite federal pressure to tighten monetary policy around cryptocurrencies, Bloomberg commodities strategist Mike McGlone said BTC has a chance to stand out as investors recognize its value as a digital reserve asset.

As Cointelegraph reported, McGlone believes that Bitcoin has a unique advantage in an environment where less stimulus is typically seen as a negative for risk assets:

“Cryptocurrencies are the go-to for risk and speculation. If risky assets fall, it will help the Fed fight inflation. As a global reserve asset, Bitcoin could be the main beneficiary in this scenario.”