Bitcoin’s mining difficulty surged by 3.9% to a new all-time high of 95.67 trillion terahashes (T) on Tuesday, according to data from Glassnode. The increase reflects rising competition within the mining industry, which has been supported by record levels of hashrate and higher mining revenue—indicators that suggest a potential bitcoin bull run may be on the horizon.
Mining Difficulty and Hashrate Reach New Highs
Bitcoin’s mining difficulty, which determines how hard it is to mine a new block, has increased 27% so far this year, rising from 72T to 95.67T. Out of 22 difficulty adjustments in 2024, 13 have been positive. The network adjusts its difficulty approximately every two weeks to ensure new blocks are mined every 10 minutes on average.
Simultaneously, Bitcoin’s hashrate the total computational power used to mine and secure the network—hit an all-time high of over 700 exahashes per second (EH/s), underlining the continued growth and investment in mining infrastructure.
Rising Difficulty and Industry Consolidation
While the increase in difficulty highlights the growing strength of the network, it also squeezes profit margins for miners, leading to higher operational costs. As a result, smaller and less efficient miners have been forced out or have sold off bitcoin holdings to fund operations. Since November 2023, over 30,000 BTC left miner wallets in one of the longest distribution periods in mining history.
However, since July 2024, miner balances have stabilized, signaling that more efficient, large-scale miners have adapted to the new conditions. Publicly listed miners now control nearly 30% of the total hashrate, consolidating the industry into fewer but stronger players.
Rising Revenue and Bull Run Signals
Bitcoin’s mining revenue has surged alongside its difficulty. On a 7-day moving average (7-DMA), miner revenue climbed to $35 million, up from a September low of $25 million. Though still below the 365-day simple moving average (SMA) of $40 million, a rise above this threshold has historically signaled the beginning of a bitcoin bull run.
As remaining miners accumulate bitcoin rather than sell, and with revenue rising, market analysts expect bullish momentum to build. This aligns with previous cycles, where miner profitability and bitcoin price rallies went hand in hand.
Outlook
With higher mining difficulty, record hashrate, and improving mining profitability, many industry observers believe that a bitcoin bull run could be imminent. As the market consolidates into stronger hands and public miners continue to expand their operations, Bitcoin appears poised for its next upward cycle.
