Bitcoin Mining Difficulty Hits New All-Time High of 109.78T as Network Hashrate Surges Past 794 EH/s

Bitcoin miners are ending 2024 on a remarkable note as the network’s mining difficulty reaches an unprecedented all-time high of 109.78 trillion, marking yet another milestone in the cryptocurrency’s relentless growth trajectory. The latest difficulty adjustment, which took effect on December 30, increased by 1.16%, reflecting the intensifying competition among miners worldwide despite the challenges posed by the April 2024 halving event.

TL;DR

• Bitcoin mining difficulty reaches a new all-time high of 109.78 trillion following a 1.16% increase
• Network hashrate surges to 794 EH/s (7-day SMA), up 0.76% week-over-week
• Miners collected approximately 3,217 BTC in block rewards, equivalent to roughly $308 million
• Hashprice stabilizes at $55 per PH/s per day, near breakeven for many operations
• Russia bans crypto mining in several regions through 2031; Ethiopia leverages GERD dam for mining

Record Difficulty Signals Unprecedented Network Security

The Bitcoin network’s mining difficulty has been on a consistent upward trajectory throughout the fourth quarter of 2024, culminating in the latest adjustment to 109.78 trillion. This figure represents the computational complexity required to mine a new block, and its steady rise indicates that more computing power than ever before is being dedicated to securing the network. Industry analysts at Luxor Technology estimate that the next adjustment, expected around January 12, could bring an additional 3.20% increase, pushing difficulty even higher into uncharted territory.

The 7-day simple moving average of the network hashrate currently stands at 794 EH/s, with the 30-day SMA at 782 EH/s. These figures represent a dramatic increase from the same period in 2023, when hashrate hovered around 500 EH/s. The exponential growth in hashrate throughout 2024 has been driven by the deployment of next-generation mining hardware, particularly Bitmain’s Antminer S21 series and MicroBT’s WhatsMiner M60 series, both of which offer significantly improved energy efficiency compared to their predecessors.

Hashprice Stabilizes Near Breakeven Levels

Despite the surge in hashrate and difficulty, Bitcoin’s USD hashprice has remained remarkably stable at approximately $55 per PH/s per day, showing only a marginal 0.22% deviation over the past week. However, this stability masks a challenging reality for many mining operations. At $55 per PH/s per day, hashprice sits at or near the breakeven point for miners depending on their electricity costs and the specific machine models they operate.

The BTC-denominated hashprice tells a slightly different story, declining 1.94% from 0.00059301 BTC to 0.00058149 BTC per PH/s per day. This decline reflects the natural erosion of per-unit mining revenue as more hashrate competes for the same block rewards, a phenomenon exacerbated by the April 2024 halving which reduced the block subsidy from 6.25 BTC to 3.125 BTC.

Miner Revenue and Transaction Fees Under Pressure

Over the past week, Bitcoin miners collected a total of approximately 3,217 BTC in block rewards, equivalent to roughly $308.29 million at current prices. However, transaction fees constituted only 1.52% of total block rewards, amounting to just 55 BTC or approximately $5.28 million. The average transaction fee per block per day fell to 0.0505 BTC, representing a sharp 45.47% decrease from the prior week’s 0.0712 BTC.

The decline in transaction fee revenue is particularly concerning for miners who have come to rely on fee income to supplement the reduced block subsidy. Forecasting models from Luxor’s research team project continued bearish fee trends, with their VAR model estimating 0.05 BTC per block per day and their ARMA model estimating 0.10 BTC per block per day for the coming week.

Global Mining Developments Shape the Landscape

The global Bitcoin mining industry continues to undergo significant structural changes as we approach 2025. In a notable regulatory development, Russia has banned cryptocurrency mining in several regions through 2031, citing concerns about energy consumption and grid stability. The ban affects regions with known energy deficits and could potentially redirect mining investment toward more favorable jurisdictions.

Meanwhile, Ethiopia has emerged as an unexpected player in the Bitcoin mining space, leveraging the Grand Ethiopian Renaissance Dam (GERD) — Africa’s largest hydroelectric dam — to power mining operations. Reports indicate that mining revenue from the dam’s operations has contributed approximately 18% to the country’s revenue generation from the project, showcasing how renewable energy infrastructure can be integrated with cryptocurrency mining.

In another striking development, MicroStrategy’s Bitcoin holdings have surpassed the entire mining output expected for the next halving epoch, highlighting the growing divergence between corporate Bitcoin accumulation and the network’s mining production capacity.

Mining Stocks Reflect Market Uncertainty

Bitcoin mining stocks presented a mixed picture during the final week of 2024. While Bitdeer (BTDR) gained 15.93% to close at $23.65, most major mining stocks declined. CleanSpark (CLSK) fell 11.97% to $9.78, Marathon Digital (MARA) dropped 7.71% to $18.44, and Core Scientific (CORZ) managed a modest 0.79% gain to close at $14.05. The overall Bitcoin Mining Stock Index reflected heightened volatility as investors weighed the impact of post-halving economics against Bitcoin’s year-to-date gain of over 108%.

The Forward Market and 2025 Outlook

The hashrate forward market is currently pricing in an average hashprice of $53.36 per PH/s per day over the next six months, with both USD and BTC contracts trading in backwardation. This pricing suggests that market participants anticipate a slight deterioration in mining economics heading into the first half of 2025, potentially reflecting expectations of continued difficulty increases without corresponding Bitcoin price appreciation.

As Bitcoin enters 2025 with blocks being found at an average interval of approximately 9 minutes and 41 seconds — well below the 10-minute target — the network is on pace for further difficulty increases. Miners who have invested in energy-efficient hardware and secured low-cost power contracts will be best positioned to weather the ongoing compression of profit margins.

Why This Matters

The relentless increase in Bitcoin mining difficulty and hashrate demonstrates the fundamental health and security of the network, even in the face of reduced block rewards following the April 2024 halving. The fact that miners continue to deploy capital and computing power at record levels signals long-term confidence in Bitcoin’s value proposition. However, the compression of hashprice near breakeven levels underscores the increasing industrialization and efficiency requirements of modern Bitcoin mining, favoring large-scale operations with access to cheap, often renewable, energy sources.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency mining involves significant capital expenditure and operational risk. Always conduct your own research before making any investment decisions.