The Relationship Between Price and Bitcoin Mining Difficulty
While Bitcoin’s price continues to remain above the $18,000 level, the difficulty in mining continues to surge at all-time high levels. More specifically, the mining difficulty rose by 8.9 % while the hash rate reached 130 exahashes.
The surge in mining difficulty has been observed in the start of bullish cycles (in periods when the price rises in continuous pace) where the price seems to attract more and more miners to enter the game and invest on it.
Larger mining difficulty on Bitcoin network means increased fees for users for their transactions as there is a lot of traffic to be processed from the miners. At this moment, the average fee in the market lays around $2.60, according to BTC.com.
In the next days, we will observe the evolution of the mining difficulty and the price formation.