Bitcoin Mining Difficulty Hits Another All-Time High

With large retail and institutional interest, Bitcoin (BTC) saw a surge in its price during the past week. However, the demand is not only driven by the retail frenzy. Some of the key indicators of the growth of the Bitcoin network, including its mining hash rate and network difficulty, also improved during the mentioned period.

According to the data from Blockchain.com, BTC mining difficulty, also known as network difficulty, has touched an all-time high of 28.587 trillion. As far as the mining rate is concerned, the number now stands at around 200 exahash per second (EH/s).

BTC's mining rate has recovered substantially since July 2021. After China’s ban on the mining of digital assets in the region, the mining rate dropped by more than 50% and touched a low of nearly 80 EH/s during the first week of July. However, the relocation of crypto miners to North America and Europe resulted in a sooner-than-expected mining recovery. In terms of mining revenues, the figure has seen volatility since July 2021 due to Bitcoin's price movements.

BTC Exchange Outflow Volume

Bitcoin exchange outflows have accelerated in the past few weeks. Additionally, BTC supply on leading crypto trading platforms has been in a downtrend since March 2020. Further, Glassnode’s recent data shows that BTC exchange outflows have reached a level of 96,200 Bitcoin per month.

“BTC exchange outflow volume recently hit a rate of 96.2k BTC per month. Aggregate exchange outflows of this magnitude have only been seen on a handful of occasions through history, with most being after the March 2020 liquidity crisis,” Glassnode highlighted.

Last week, Finance Magnates reported a sharp surge in Bitcoin exchange outflows. For the whole week, BTC inflows came in at $7.9 billion, compared to the outflows of $9.5 billion. Ethereum outflows touched $6.8 billion, compared to the inflows of $5.1 billion.