The Bitcoin network is set to increase its Difficulty by approximately 4% this Sunday, according to data from CoinWarz. This adjustment is a direct result of the recent surge in the Bitcoin Hashrate, which reached an all-time high just a few days ago.
The Difficulty metric, a key component of the Bitcoin blockchain, regulates the time it takes miners to solve complex mathematical problems and generate new blocks. This mechanism ensures that blocks are mined at a consistent rate, approximately every 10 minutes.
The recent increase in Hashrate, representing the total computing power of the Bitcoin network, has led to faster block production. To maintain the intended block generation time, the network will adjust the Difficulty upwards. This adjustment will effectively slow down the mining process, bringing it back to the target rate.
The 7-day average Bitcoin Hashrate, as shown on Blockchain.com, has been steadily rising, reaching a new record high just recently. While the Hashrate has experienced a slight pullback, it remains close to its peak.
The upcoming Difficulty adjustment, expected to occur this Sunday, is likely to set a new all-time high for the metric.
At the time of writing, Bitcoin is trading around $97,000, down more than 6% over the past week.