Bitcoin Difficulty Soars, Pressuring Miner Profitability

The Bitcoin network difficulty has just increased by 4%, impacting miner profitability and potential transaction fees. This marks the fifth consecutive adjustment since June, raising concerns about continued financial pressure on miners. The change in difficulty coincides with a decline in hash price, further compressing profit margins. Miners are facing challenges as weak transaction fees average just 0.025 BTC per block, contributing to low profits. The impact of these fluctuations is compounded by declining hash price, currently at $51 – a recent low point. This ongoing trend makes the future profitability of Bitcoin dependent on price recovery or an increase in on-chain fees. Experts are watching closely as the 4% difficulty adjustment continues and the effects play out on miners’ operations. Some notable figures like Paolo Ardoino, CEO of Tether, have commented on the situation, but other key stakeholders remain silent.