Bitcoin mining difficulty hits record high, wary of large remittances from US government wallets

1 year ago 70

Macroeconomics and financial markets

In the US NY stock market on the 12th, the Dow Jones Industrial Average rose 86 dollars (0.25%) from the previous day, and the Nasdaq Index closed at 158 points (1.1%) higher.

The U.S. CPI (Consumer Price Index), which has attracted attention, rose 3.0% year-on-year, falling below market expectations and falling for the 12th consecutive month. The core index, which excludes energy and food, is 4.8%.

The Nasdaq index, which has a high percentage of tech stocks, rose on the positive impression of the slowdown in inflation. At the US Federal Open Market Committee (FOMC) meeting in July, an additional rate hike of 0.25% was priced in, but speculation increased that the rate would be halted again after that.

connection:U.S. June CPI is the lowest growth rate in about 2 years | Summary of important breaking news on the morning of the 13th

connection:Stock investment recommended for cryptocurrency investors, representative cryptocurrency stocks of Japan and the United States “10 selections”

Virtual currency market

In the crypto asset (virtual currency) market, the Bitcoin price fell 0.77% from the previous day to 1 BTC = $ 30,320.

BTC/USD daily

Even though the CPI (US Consumer Price Index) rose immediately after the announcement, the top of the $31,000 level, which is the main resistance line (upper resistance line), fell back heavily.

A fund transfer of 9,825 BTC (equivalent to $300 million) was confirmed from two cryptocurrency wallets believed to be linked to the US Department of Justice (DOJ), which has become a cause for caution in the market.

Breaking: The Silk Road BTC-related addresses which are suspected to be seized by the US Department of Justice, are transferring more than 9k BTC. https://t.co/Ws3f1eYWn8

The US government previously sold 9,800 BTC on March 14 and said it plans to sell another 41,500 BTC…

— Wu Blockchain (@WuBlockchain) July 12, 2023

Last November, the U.S. Department of Justice seized a large amount of Bitcoin (BTC) stolen from the dark web “Silk Road,” and in March 2011 sold 9,861 BTC worth $216 million. Court documents reveal that the company plans to sell the remaining 41,500 BTC in four installments within a year.

connection:US government plans to sell bitcoins worth a total of 156 billion yen in 2023

According to Glassnode, BTC is currently in a very tight range, with only 4.6% spread between its highs and lows over the past two weeks.

The #Bitcoin The 14-day Price Range remains extremely narrow, residing at a value of 4.6%, with only 1.9% (2167/113790) of trading hours recording a lower value.

With Bitcoin rarely quiet for such sustained periods, the probability of a volatile move in either direction is enhanced. pic.twitter.com/c9gpceZBVD

—glassnode (@glassnode) July 11, 2023

The same price trend was shown in January this year, when the short-term uptrend began.

Minor situation

The difficulty (mining difficulty) of Bitcoin (BTC) reached 53.91 T, +6.45% compared to the previous time, and renewed the highest difficulty ever. With the halving coming up next year, the competition between miners continues to intensify, and the average mining speed (hash rate) continues to hit a record high of 385.87 EH/s.