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Bitcoin mining difficulty breaks yet another all-time high

Author: Content Editor
The mining difficulty for Bitcoin has reached a new record as miners are forced to allocate more resources to the network. This increase in difficulty, along with rising costs and competition, is raising concerns about the sustainability of the system. The recent surge in Bitcoin's price, driven by ETF purchases, has further intensified mining competition and expenses. Transaction fees may not be enough to offset these rising costs, leading to potential profit cuts for miners. On the other hand, the increasing demand from ETFs is being met by OTC desks, which are keeping Bitcoin supplies at record levels and preventing price spikes. However, there has been a slowdown in inventory growth for OTC desks, which could potentially put upward pressure on Bitcoin's price. With the upcoming US presidential election, Bitcoin is experiencing market volatility, and analysts are predicting a possible price retracement before significant gains resume. Election-related uncertainty could trigger short-term volatility, although Bitcoin's overall supply-demand dynamics remain bullish. The election season coincides with key milestones for Bitcoin, such as the six-month anniversary of the last halving event, which could contribute to another price record for the cryptocurrency.

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