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The Bitcoin mining operation has reached new highs, as the network's hash rate increased to 1.12 billion terahashes per second. This record high on September 12, as reported by Bitinfocharts, was accompanied by a difficulty adjustment of 136.04 trillion, which was also a new record high.
The Bitcoin hash rate is the overall computing power in the blockchain. An increase in the rate is an indicator of increased network security. The level of difficulty of Bitcoin, which varies every two weeks, defines the level of difficulty by which miners have to validate blocks. As the hash rate increases, the next difficulty update will be September 18, and is estimated to be 144.72 trillion, an increase of 6.38%.
According to CryptoQuant statistics, on September 9, miners' reserves increased to 1.808 million BTC, the highest point in 50 days. This trend suggests that miners are not selling their coins but holding them, which may reduce the pressure to sell them in the market in the short term.
According to Varun Satyam, co-founder of Davos Protocol, this situation usually pushes smaller or less productive miners to reduce their operations. Larger firms can keep or increase their holdings, waiting for possible profits when the market momentum increases.
Bitcoin price is trading at approximately $115,000, 0.8% higher and 3.8% higher than the same time last week. The most recent events are accompanied by anticipation of a Federal Reserve interest rate reduction when the Federal Reserve holds a meeting on September 17. Most market participants expect a cut of 25 basis points, which may contribute to positive sentiment.
Analysts point out that historical rises in hash rate, especially following halving events, have frequently been followed by upward price actions. With reduced levels of selling pressure and favorable macroeconomic indicators, experts say Bitcoin has entered another stage of development.
Myriad has released prediction market data that indicates a mixed outlook for Bitcoin. Over 80% of respondents believe that Bitcoin will be priced above $105,000 by September end. However, there is a split in opinions regarding the end-of-year prices: 56% anticipate an increase above $125,000, while 44% expect a potential decrease below $105,000.
Also Read: Bitcoin News Today: Bitcoin ETF Surge Pushes Price Above $114K: What’s Driving the Momentum?
