Categories: Bitcoin Latest News

Bitcoin Difficulty Hits New Highs as Key Metric Signals Miner Capitulation and Possible Bottom

Bitcoin (BTC) difficulty hit an all-time high of 114.7 trillion (T) following a 5.6% upward adjustment over the weekend, according to CoinWarz.

This coincides with the Hash Ribbon metric signaling a miner capitulation. Hash Ribbon, is a market indicator, which hints at a local bottom for bitcoin (BTC) and often forms when miners capitulate — when mining costs exceed profitability.

According to Glassnode data, miner capitulation began in early February. Bitcoin is down over 4% month-to-date. Historically, when this metric signals capitulation, it has marked local price bottoms.

If this pattern holds, bitcoin’s bottom could be around $91,000. The last capitulation signal occurred in October 2024, just before BTC surged 50%.

This rise in difficulty is due to bitcoin’s rising hash rate, which hit an all-time high on Feb. 4. Mining difficulty adjusts every 2,016 blocks, targeting an average block time of 10 minutes.

As difficulty increases, mining becomes more competitive, placing additional pressure on miners. January’s production data reflects this, with Riot Platforms (RIOT) being the only major public miner to report a month-over-month production increase.

Read MoreCoinDesk: Bitcoin, Ethereum, Crypto News and Price Data[#item_full_content]

Recent Posts

Goldman Sachs Disclosed Ownership of Bitcoin ETFs. Here’s Why It Doesn’t Mean Much

Bitcoin Twitter (or Bitcoin X) is having a moment after a 13F filing by Goldman…

9 minutes ago

Is Ethereum ‘Most Hated Rally’ About To Begin? Analyst Finds Bitcoin Cycle Similarities

After a relatively subdued price performance in 2024, Ethereum (ETH) could be on the verge…

9 minutes ago

El Salvador Dispatch: Berlín, the Bitcoin Marvel Hidden in the Mountains

In El Salvador, about two hours away from the capital, up in the mountains, lies…

1 hour ago

Bitcoin OTC Balances Decline, Raising Market Supply Questions

Bitcoin has experienced a challenging period recently, with its price consistently declining over the past…

1 hour ago

Disappointing U.S. CPI Data Sends Bitcoin Tumbling Below $95K

U.S. inflation unexpectedly marched higher in January, sending crypto and traditional markets sharply lower. The…

2 hours ago

4 Best Meme Coins to Watch as Trump’s Crypto Company Announces Bitcoin Reserve

World Liberty Financial (WLFI), a crypto project Trump has financial interests in, has launched a…

2 hours ago