Bitcoin Mining Difficulty Hits New ATH of 36.95T Despite Selloff
The Tokenist | Nov 22, 2022 12:30AM ET
Bitcoin mining difficulty surged 0.5% Monday, reaching a new all-time high of 36.95 trillion.
According to on-chain data, the bitcoin mining difficulty soared to a new all-time high after climbing over 0.5% on Monday. The increase in difficulty came in the face of a sharp slump in Bitcoin’s price in the recent period, which was exacerbated following FTX’s demise.
h2 Bitcoin Mining Difficulty Up Over 50% in 2022/h2Bitcoin mining difficulty climbed 0.51% today, hitting a new all-time high of 36.95 trillion. The latest jump takes BTC mining difficulty year-to-date gain to 51%.
The new record-high comes despite the steep decline in the world’s top cryptocurrency in recent weeks. Bitcoin currently trades just above the $16,000 mark, with its 2022 loss widening to over 66% following the recent collapse of FTX.
The crypto exchange filed for bankruptcy earlier this month due to a liquidity crunch. Later reports revealed that the company borrowed $10 billion in user funds to cover the liabilities of its sister firm Alameda Research, which was at the center of FTX’s demise.
The implosion triggered a gigantic sell-off in crypto assets, with investors pulling out over 220,000 bitcoins from crypto exchanges in the week after FTX filed for bankruptcy. However, some believe that the full contagion impact is yet to come. Alesia Haas, CFO at Coinbase (NASDAQ:COIN) Global said,
“What we are seeing now is a fallout of FTX is becoming much more like the 2008 financial crisis where it’s exposing poor credit practices and is exposing poor risk management.”
The crypto downturn was already strong enough as rampant inflation, and a flurry of jumbo interest hikes drove investors away from risk assets. hash rate has risen to new all-time highs several times this year.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.