Bitcoin (BTC) difficulties reached an all-time high of 114.7 trillion (T), with a 5.6% upward adjustment over the weekend.
This coincides with the hash ribbon metric indicating minor surrender. Hash ribbons are market indicators and suggest local bottoms for Bitcoin (BTC), often formed when miners surrender if mining costs exceed profitability.
According to GlassNode data, the minor’s surrender began in early February. Bitcoin has dropped by more than 4% in the monthly period. Historically, this metric signalled a surrender and marked the bottom of local prices.
If this pattern is maintained, the bottom of Bitcoin could be around $91,000. The final breakdown signal occurred in October 2024, just before BTC surged by 50%.
This increase in difficulty was due to an increase in Bitcoin hashrate, reaching an all-time high on February 4th. Mining difficulty is adjusted for every 2,016 blocks, with an average block time of 10 minutes.
As the difficulty grows, mining becomes more competitive and puts additional pressure on miners. January’s production data reflects this, with the riot platform (riots) being the only major miner reporting an increase in production in a month.