Difficulty Hike Threatens Miner Profitability: Can Bitcoin Break $82,900?
Bitcoin's upcoming difficulty adjustment is expected to increase by 4.6976%, putting pressure on miners' revenues.
The network saw a price rebound and significant surge in mining revenue in August, but this positive momentum is now under threat from the upcoming difficulty adjustment.
An analysis by Luxor indicates that as new blocks are mined faster than the standard 10-minute interval, the network's mechanisms will automatically increase the computational workload, reducing revenue per unit of hash power and exposing mining operations to the risk of eroding profits.
According to data compiled by Woofun AI, if the price of Bitcoin, transaction fees, and machine operating time remain unchanged, the upcoming 4.6976% difficulty increase is expected to reduce the hash rate price by approximately 4.49%, from $39.25 per day to about $37.49 per petahash per day.
Mining companies must strike a new balance between efficiency and cost to contend with intensifying market competition.