The Bitcoin (BTC) network recorded a new all-time high mining difficulty of 26.643 trillion with an average hash rate of 190.71 EH/s, indicating strong support from the community despite an ongoing bear market.
The complexity of the Bitcoin network is determined by its overall processing power, which correlates with the complexity of confirming transactions and extracting BTC. As can be seen from the data from Blockchain.com, the network issue decreased between May and July 2021 due to various reasons, including the general ban on crypto-mining from China.
Problems with the BTC network. Source: Blockchain.com
But when miners displaced from other countries resumed operations, the network problem improved dramatically since August 2021. As a result, the BTC network hit an all-time high of $26.643 trillion on Saturday.
According to BTC.com, the network will continue to strengthen, reaching a new all-time high over the next 12 days, with a network difficulty of 26.70 trillion.
Suspected issues with the BTC network over the next 12 days. Source: BTC.com
Over the past four days, F2Pool has contributed the most to the hash rate, mining 88 BTC blocks, followed by Poolin with 76 blocks. As of yesterday, the average transaction fee was around $1.58, which peaked historically at $62.78 as early as April 2021.
Related: Bitcoin Could Overtake Stocks in 2022 Amid Fed Tightening – Bloomberg Analyst
Despite the federal pressure to tighten monetary policy on cryptocurrencies, Mike McGlone, a commodity strategist at Bloomberg, notes that Bitcoin has a high chance of hitting the top once investors realize the value of the digital reserve asset.
According to Cointelegraph, McGlone believes that Bitcoin is in a unique position to transition into an environment where stimulus cuts are generally viewed as negative for risky assets:
“Cryptocurrencies are among the most risky and speculative. If risky assets fall, that helps the Fed fight inflation. By becoming a global reserve asset, Bitcoin could be the main recipient in this scenario.”