Bitcoin’s Mining Difficulty Rises Despite Market Drop—What Does It Mean?
Bitcoin shows signs of potential reversal after a prolonged bearish trend, currently priced at $83,510, a 2.6% increase but down 7.5% over the past week. Bitcoin's mining difficulty is on the rise despite a 30% market correction, indicating miners are holding reserves rather than selling at lower prices. The Miner Position Index (MPI) previously indicated selling pressure but did not lead to significant downturns, suggesting miners maintain a holding strategy. A surge in stablecoin transfers indicates large-scale investors may be absorbing market shocks, reducing further price declines. Increased stablecoin activity and active Bitcoin addresses suggest heightened network participation, potentially signaling spot accumulation and a precursor to price recoveries. Continued accumulation amidst low sentiment could lead to a short squeeze and rapid price increases for Bitcoin.
