Bitcoin has been recording notable dips in terms of price. However, the mining difficulty level has recorded a spike despite the prices suffering from these dips. The mining difficulty has increased by around 9% within the past 24 hours.
The Bitcoin mining hash rate is also standing at new all-time highs. The records broken by these metrics show that while Bitcoin’s trades are slumping, the mining process is recording notable gains.
Bitcoin mining difficulty at record highs
A recent report by Glassnode noted, “BTC mining difficulty increased by +9.3% today, hitting a new ATH.” The mining hash rate is also recovering after it spiked to the level of 183 Exahash earlier this month. This is the highest level attained by this metric.
The Bitcoin mining hash rate suffered a major blow in May last year after China banned Bitcoin mining. The metric dropped by around 54% at the time. However, since then, it has recorded a notable recovery. The recovery of the mining process has also led to a rise in mining difficulty.
The recovery comes as the price of Bitcoin undergoes a major correction. On Saturday, the price of Bitcoin dropped towards lows of $34,000. The main reason behind the recent dip in Bitcoin’s prices is an influx of inflows on exchanges. Data from Glassnode shows that the BTC exchange inflow volumes reached an all-time high in four months.
“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.”
Russia could impose a ban on Bitcoin mining
Recent reports stated that Russia could impose a ban on cryptocurrency mining. Russia is currently a major Bitcoin mining hub, with many mining firms moving to the country after the China ban. This ban could have an effect on the global BTC mining sector.
The potential for such a ban was hinted at by the Chief Operating Officer for ARK36, Anto Paroian, who noted that Russia has talked about the possibility of banning crypto mining many times before, hence the recent announcement was not surprising.
“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,” Paroian added.
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