Quick Take
The Bitcoin network has recently seen a significant uptick in its difficulty adjustment and hash rate, as reported by CryptoSlate.
A notable 8% rise in difficulty adjustment, the highest in 12 months, pushed it to an all-time peak of 81.73 T, according to data from Coinwarz. Concurrently, the network’s hash rate – measured over a 14-day moving average – also hit a record high, reaching 583 eh/s.
Such surges are not uncommon as we edge closer to a Bitcoin halving event scheduled for April 2024. Analysis reveals that the network hash rate typically experiences heightened growth in the 4-6 months leading up to a halving.
Glassnode data on hash rate growth at the onset of each Bitcoin halving is recalibrated to a standardized baseline index of 100%. This standardization allows for a precise tracking of growth that transpires throughout each halving period.
Since the start of the current halving period, the hash rate has grown an impressive 380%. However, it’s worth noting that the growth is decreasing with each cycle compared to the 8000% growth observed in the 2016-2020 cycle.
This growth could be attributed to miners rushing to benefit from the current block reward of 6.25 BTC before the halving event in April, which will be reduced to 3.125 BTC.
James Van Straten
James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.
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