Bitcoin experienced significant fluctuations in January, setting a new record by surpassing $108,000 but later dipping to around $89,000, a level last seen in November 2024.
While the price movement raised questions, the network’s hash rate, a key indicator of mining competition and difficulty, showed a subtle increase.
Despite the mixed price performance, the Bitcoin network’s hash rate grew modestly. Analysts from JPMorgan noted that January saw a small uptick in the hash rate, with an increase of 1% bringing it to 785 exahashes per second (EH/s). At the same time, mining difficulty saw a slight reduction, falling by 2% for the month.
However, the drop in mining difficulty was seen as unusual, as it rarely occurs. Still, analysts pointed out that the current difficulty is 25% higher than it was before the halving event in April 2024.
In terms of mining profitability, there was a slight improvement. Miners saw a small increase in earnings, with an average daily block reward of $57,200 per EH/s, a less than 1% gain compared to the previous month.
As Bitcoin continues to consolidate above $100K, a critical market signal is flashing: BTC funding rates remain elevated, even as price action cools.
Billionaire investor Ray Dalio, founder of Bridgewater Associates, has suggested that a balanced investment portfolio should include up to 15% allocation to gold or Bitcoin, though he remains personally more inclined toward the traditional asset.
With Bitcoin hovering near $119,000, traders are weighing their next move carefully. The question dominating the market now is simple: Buy the dip or wait for a cleaner setup?
Bitcoin has officially reached the $116,000 milestone, a level previously forecasted by crypto services firm Matrixport using its proprietary seasonal modeling.