Bitcoin mining difficulty reached an all-time high of 53.91 trillion units after the latest difficulty adjustment on July 12. It is a measure of how difficult it is to mine Bitcoin (BTC) blocks.
The blockchain adjusts its difficulty every two weeks to maintain its processing time of 10 minutes. When the network’s processing power increases, it adjusts to make mining challenging, reducing the profitability for individual miners.
The latest adjustment will add to the pressure on miners, who have been selling off their mined BTC since June. Some analysts suspect that the lack of miner accumulation has likely restricted an uptrend in the BTC price.
With the latest difficulty adjustment, the profitability of medium- and small-scale miners will likely drop into negative territory, forcing them to temporarily turn off some of their ASIC hardware.
The potential capitulation of weaker miners could finally enable larger miners to accumulate Bitcoin, which may reduce the mining selling pressure.
