Bitcoin mining difficulty remains near record high

Following another recalculation, the mining difficulty of the first cryptocurrency declined by 0.2%, to 36.76 T. The metric slightly retreated from the previously reached maximum.

The average hashprice remained above 263 EH/s. The interval between blocks over the recalculation period was virtually the 10-minute target set by the algorithm.

According to Glassnode, the network’s computing power (7-day smoothed moving average) slid back from the November 1 maximum (272.4 EH/s) to around 267 EH/s. Since the start of the year (143 EH/s on January 1), the metric has almost doubled.

Arcane Research forecast a decline in mining profitability under pressure from the Bitcoin price drop and rising hashrate. In June, cash flow from Bitcoin mining fell by 80% from the November 2021 peak — to levels seen two years ago.

In early September, Arcane Research noted the solid financial footing of publicly traded mining companies. Despite liquidating substantial Bitcoin reserves in June and in July, in August miners again transitioned to accumulating cryptocurrency.

In September, the industry faced the first major bankruptcy of private infrastructure provider for mining Compute North.

By October, Nasdaq-listed Core Scientific reported a threat of insolvency. A similar warning was issued by Argo Blockchain, listed on the exchange.

According to Hashrate Index, the hashprice since the start of the year declined from $247 per PH/s-day to $73.5. The metric rebounded from late-October’s minimum at around $66.7 per PH/s-day.

Analysts diverged in explaining the reasons for continued hashrate growth in adverse market conditions. Jaran Mellerud of Hashrate Index pointed to large-scale equipment purchases by publicly traded miners with deliveries through 2022 and into the early part of the next year. Over the year, publicly traded firms increased their share of Bitcoin mining capacity to 25%.

The founder of Capriole Investments, Charles Edwards, suggested that the rise in hashrate is driven by the unwritten arrival of large energy companies into the industry. In his view, these giants and the enterprises backed by them will become serious players in the industry in the near future.

According to Hashrate Index, the hashprice since the start of the year declined from $247 per PH/s-day to $73.5. The metric rebounded from late-October’s minimum at around $66.7 per PH/s-day.

In October, aggregate miners’ revenue rose by 7% from the previous month — to $589.7 million, according toForkLog’s report. In September, the figurefell by 19%.

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