The metrics used to measure Bitcoin's mining activity are approaching their ATHs, indicating an increase in the number of active miners on the bitcoin network, as they anxiously prepare for next week's halving.
Bitcoin's mining difficulty, an indicator of competitiveness among miners: the greater the number of miners competing in the network, the greater its difficulty: it reached 16.10 billion, increasing by 0.92% from its last value of 15.96 T reached on April, the 21st.
This is also bringing Bitcoin's difficulty close to the all-time high of 16.55T that occurred in March, according to Glassnode, which also reported a new ATH in terms of hashrate.
– glassnode (@glassnode) May 3, 2020
On the other hand, the average Hashrate exceeded 115 EH / s (Exa Hash per second), remaining above 119.01 EH / s, which represents a significant challenge for smaller-scale miners, who have had an increase of more than 16 % in mining difficulty so far this year.
This mining difficulty adjustment was a reaction to the unusual reward, generally 5 to 6 BTC per hour, obtained by miners last week when they mined 16 new blocks in about an hour.
After halving, mining rewards will be cut in half, from 12.5 BTC per mined block to 6.25, making mining work less profitable, causing some miners to abandon BTC while searching for other coins that generate more revenue .
This is unlikely to happen now as prices have increased by more than 30% in the past 7 days, allowing smaller miners to stay in the game and not end up in a capitulation cycle. Currently, BTC is holding strong around $ 8,870 seeking to break the $ 9,000 barrier to advance a continued recovery to $ 10,500 as some analysts propose.
Bitcoin's active supply is at its lowest level in 6 months, indicating that, like miners, more users and investors are joining the BTC network before the halving event, according to data presented by Glassnode.
Previous 6-month low of 1,120,501,723 was observed on 04 May 2020
View metric: https: //t.co/1iBTMZ79br pic.twitter.com/6876oRCNFU
– glassnode alerts (@glassnodealerts) May 5, 2020