Bitcoin's recent price surge is drawing attention to its difficulty adjustment mechanism, which could impact mining profitability. As the price rises, miners are incentivized to increase production, leading to increased competition and potentially higher costs. This may lead to a reversal of the current upward trend, so investors should be cautious.

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The difficulty adjustment mechanism is indeed a crucial aspect to consider. As miners increase production, it's likely to lead to a supply glut, potentially putting downward pressure on prices.