What happened?
Bitcoin’s hash rate, a measure of the network’s computational power, reached a record milestone of 1.12 billion TH/s on September 12. The network difficulty, which dictates how much computational work is needed to add new blocks to the blockchain, is expected to reach a record peak of 136.04T. Market analysts suggest that Bitcoin is now better positioned to overcome its resistance level at $117K.
Who does this affect?
This primarily affects Bitcoin miners and investors, as increased hash rate signals an increase in computational resources allocated for mining Bitcoin. It reflects greater miner confidence, indicating their belief that future Bitcoin valuations will justify their investment in hardware and energy. The upcoming difficulty adjustment could lead to a dynamic shift in mining behavior and network resilience.
Why does this matter?
This matters because it could potentially trigger a major breakout for Bitcoin above the $117K price barrier. Analysts believe that Bitcoin’s adoption as a strategic treasury asset by major economies, the Fed’s possible rate cut, and the reshaping of mining strategies may all contribute to a bullish outlook. Therefore, these developments could significantly impact the overall market direction for Bitcoin and other cryptocurrencies.