In addition to a sharp plunge in its price, BTC saw a spike in its mining difficulty level. The number increased by almost 9% within 24 hours yesterday. Earlier this month, the Bitcoin hash rate topped the level of 183 Exahash, which is the highest level on record.
“BTC mining difficulty increased by +9.3% today, hitting a new ATH,” the crypto analytics platform, Glassnode noted. Finance Magnates recently highlighted a sharp jump in old Bitcoin supply.
Bitcoin hash rate dropped by nearly 54% in May 2021 after China imposed a ban on the mining of digital currencies in the region. While the hash rate has recovered substantially, the mining difficulty has climbed as well.
BTC is currently going through a major correction. The digital asset reached a low of almost $34,000 on Saturday. One of the biggest reasons behind Bitcoin’s recent dip is an enormous rise in exchange inflows. According to Glassnode’s data, Bitcoin exchange inflow volume reached its highest level in 4 weeks today. “Bitcoin Exchange Inflow Volume (7d MA) just reached a 1-month high of 1,279.853 BTC. The previous 1-month high of 1,277.577 BTC was observed on 12 January 2022,” the data shows.
Russia’s Potential Crypto Mining Ban
Earlier this week, reports emerged about Russia’s potential ban on crypto mining in the country. Being one of the top destinations for global crypto mining companies, Russia holds a significant place in the international digital asset ecosystem.
“The Bank of Russia has hinted at the possibility of a sweeping ban on crypto many times before so this recent development is hardly surprising. Importantly, the ban will also outlaw any crypto mining activities. As this would negatively affect Bitcoin’s hash rate, some investors may be wondering whether the ban, when enforced, could result in more selling pressure on the price of this asset. This, however, is unlikely to happen. Russia hosts a little more than 10% of Bitcoin's current mining power,” Anto Paroian, the Chief Operating Officer at ARK36, said.
