Market Analysis Report (18 Jan 2023)

Bitcoin miners are powering up their rigs once again after the price of the flagship cryptocurrency surged to surpass the $21,000 mark earlier this week in what could be BTC’s longest winning streak in a decade.

The cryptocurrency’s mining difficulty, which is determined by the computing power behind the network, has recently soared by over 10%, revealing that miners are plugging their machines back on to capitalize on the recent price rise.

Low cryptocurrency prices and high energy prices had been hindering miners since last year, with some large-scale operations struggling to repay mounting debt and being on the verge of bankruptcy.

The recent jump in computing power is the second-largest since August 2021, and follows a 13.5% surge in early October, after energy costs declined due to a drop in temperatures in cryptocurrency mining hubs in the U.S.

While network difficulty may soon adjust to the growing hashrate, Bitcoin’s rebound has seen cryptocurrency mining stock move up, to the point they’re on track for their best monthly performance in a year.

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• Source: https://www.cryptocompare.com/email-updates/daily/2023/jan/18/