The entire crypto market at press time is bleeding heavily. Total market capitalization is down nearly 11% in the last 12 hours. The drastic drop resulted in a loss of approximately $233 billion against the total market capitalization. Thereby, it fell below $ 2 trillion for the first time since the end of September.
Liquidations on trading platforms (BTC + Altcoins) totaled $725 million, with accounting BTC positions for $292 million.
Source: CoinGlass
Bitcoin, the largest cryptocurrency is leading the decline with a 7% loss in the past 24 hours. At the time of writing, it is trading just above the $39k mark. Somehow, keep it…
In addition, king coins also saw crackdowns on various mining hubs. For example, Kazakhstan – one of the countries with the largest hash rate has seen political protests due to rising prices. But Bitcoin’s hashrate took another hit. And of course, China. It dropped difficulty by the largest percentage on record as miners in that country shut down their equipment.
The road to recovery
Having said that, Bitcoin mining difficulty shows a full recovery after this major crash. Although there are many countries that discourage cryptocurrency mining, miners are more resilient than many expect. Figures from various sources show that the crypto mining hashrate has hit an all-time high.
The difficulty is automatically adjusted based on the amount of computing power on the network, or hash rate, to keep the time it takes to mine a block roughly steady at 10 minutes. The higher the hashrate, the higher the difficulty and vice versa.
The source: Glassnode
According to Glassnode, Bitcoin Mining Difficulty increase up 9.3% today, hitting a new ATH. Today’s gain is the second so far in 2022, following the 0.41% correction of Jan. 8.
In terms of hashrate, the numbers are impressive. According to Blockchain.com, the total hash rate stands at 198.86 million TH/s or 198.8 EH/s. This has increased by about 18 EH/s since Dec.
An independent cryptocurrency researcher Kevin Rooke reiterated the entire scenario in a tweet. Thereby depicting his bullish story considering the top coin despite the current state of failure.
6 months ago, Bitcoin mining difficulty dropped 45% after China’s mining ban.
Today, it’s officially back at an all-time high.
Incredible display of resilience. Bullish for Bitcoin. pic.twitter.com/cxHLv8SslM
– Kevin Rooke (@kerooke) January 21, 2022
Additionally, analysts and industry insiders predict this trend to continue into 2022. This could happen as North America, Russia, and Europe are expected to deploy more machines to such activities.