Although the price of Bitcoin (BTC), the largest cryptocurrency by market cap, is posting only minor gains, competition among its miners has been on the rise, with mining difficulty hitting a new all-time high.
Specifically, Bitcoin mining difficulty as of October 10 was 35.61 trillion, which is not only its new all-time high, but also the steepest increase since May 13, 2021 (+13.55%), as of despite the fact that the price of Bitcoin grows only 0.49%. in the last seven days, according to BTC.com data.
As a reminder, Bitcoin mining difficulty on May 13, 2021 grew by 21.53% to 25.05 billion. It’s also worth noting that the difficulty of the network measures how difficult it is to mine a Bitcoin block, with a high difficulty meaning that it takes more computing power to mine the same number of blocks and make the network more efficient. safe.
The calm before the storm
Meanwhile, some indicators point to upcoming price volatility for the flagship digital asset.
The leading indicator is a cooling in Bitcoin’s volatility, especially compared to traditional stocks. In fact, the volatility of the original cryptocurrency has recently fallen below that of the Dow Jones index.
According to analyst and crypto-trading expert Michaël van de Poppe, Bitcoin’s volatility index below 25 has historically been “a guaranteed recipe for massive volatility,” whether up or down.
Another indicator is the Consumer Price Index (CPI) and Producer Price Index (PPI) reports due out this week, leading Van de Poppe to suggest “serious volatility” could be emerging.
At the same time, crypto analyst Ali Martinez noted that “Bitcoin losing the $19,000 support level can spell trouble” as he previously referred to it as “the most significant support level where 1.3 million addresses bought more than 680,000 BTC.”
Bitcoin Price Analysis
As it stands, Bitcoin is currently trading at $19,368, which is down 0.82% on the day, but is still a modest 0.76% gain over the previous week.
The market capitalization of the largest cryptocurrency asset by this gauge at press time was $370.46 billion, according to CoinMarketCap data retrieved by Finbold on Oct. 10.
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