For all the turmoil Bitcoin found itself in for most of 2022, the largest crypto network is set to end the year on a high with an anticipated increase in mining difficulty. Accordingly, Bitcoin will see a 3% rise in mining difficulty by 2022.
A Year To Remember
According to the Bitcoin mining difficulty estimator, Bitrawr, the current mining difficulty for BTC is 3424431613176.18, with an expected increase of approximately 3% to push the mining difficulty to 35421102548895 or 35421764497396.
It is worth noting that Bitcoin mining difficulty measures how challenging it is to crack the cryptographic puzzle needed to build a block on the Bitcoin network, and it’s adjusted every two weeks. So far in 2022, Bitcoin has seen 26 mining adjustments, with 16 coming out positive while the remaining ten were negative.
However, this was slightly different from the previous year, when the leading digital asset saw 27 mining difficulty adjustments, of which 19 were positive and eight were negative. Furthermore, BTC witnessed nine consecutive positive adjustments following the ban on cryptocurrency by the Chinese government.
According to the latest performance chart from Glassnode depicting the mining difficulty rate, mining difficulty saw a significant spike in October. However, it slumped last month by 4% below the previous month before further sinking to its current level in December.
Notwithstanding the drop, BTC’s mining difficulty is expected to see a 4% rise below its all-time high, signifying that the rate remains high. Meanwhile, the excellent mining difficulty in 2022 is due to the spike in the hash rate.
The increase in hash rate has pushed many miners to the brink. Many are struggling to stay afloat amid the fluctuation in the price of BTC.
BTC Sees Another Large Whale Selloff
On December 18, the flagship digital currency witnessed a record-breaking selloff involving whales, with about 280,000 BTC outflowing in 30 days. Furthermore, in the past 30 days, BTC whales have offloaded the highest amount of BTC within 30 days.
According to Glassnode, the whales currently hold roughly 9 million BTC, representing a significant amount of the total assets in supply. Meanwhile, the large token holders are those holding at least 1,000 BTC.
As a result, these large holders significantly influence the market price of BTC, and any selling activity can spark another price swing for the leading digital asset. Glassnode’s further review of the trend shows that Bitcoin whales are under intense selling pressure as the asset’s price continues to trade within a range.
Nevertheless, BTC traders anticipate another rally to reverse the downward price trend as the year winds down.
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