Bitcoin’s Significant Adjustment: Mining Difficulty Hits 18-Month Low – What’s Next For Miners?
09 Mai 2024 - 10:00PM
NEWSBTC
The Bitcoin mining difficulty has experienced a significant
decrease, the largest drop observed in the last 18 months. This
change is directly tied to fluctuations in the network’s hash rate,
which has dipped below 600 EH/s following the recent halving event.
The adjustment, which marks a 5.7% fall in mining difficulty,
brings the level down to 83.1 trillion, according to data from
Bitbo. This most substantial adjustment since December 2022
reflects broader shifts within the Bitcoin mining landscape. At
that time, Bitcoin’s price hovered around $17,000, contrasting
sharply with current levels. Notably, the mining difficulty, a
metric that determines how challenging it is to find a new block,
adjusts approximately every two weeks, or every 2016 blocks. This
system ensures that block discovery remains consistent at around
every 10 minutes, irrespective of the number of miners. Related
Reading: Bitcoin Hits ‘Danger Zone’: Peter Schiff Warns Of ‘Do or
Die’ Scenario Impact On Miners And Market Dynamics The recent
decline in mining difficulty came after a 10% drop in the network’s
hash rate from a seven-day moving average of 639.58 EH/s to 581.74
EH/s. This decrease in hash rate led to longer average block times
of about 10 minutes and 36 seconds, up from the standard 10
minutes, before the difficulty adjusted downward at block height
842,688. The reduced hash rate also contributed to a new low in the
hash price, which fell to roughly $0.049 per TH/s per day. This
decline impacts miners’ profitability, as the hash price, a term
introduced by Bitcoin mining firm Luxor, represents the earnings a
miner can expect per unit of hashing power per day. However,
today’s negative difficulty adjustment may provide some relief for
miners, making it easier to mine blocks than in the previous two
weeks. Bitcoin Market Reactions And Investment Trends The
adjustments in mining difficulty and hash rate come when Bitcoin’s
price also shows signs of volatility. After reaching a peak above
$73,000 in March, the price has fallen by 16% and is now
trading around $61,376. This decline mirrors the broader trend in
the mining difficulty, suggesting a possible correlation between
these metrics. Related Reading: Bitcoin Bears Keeps Pushing, Why
BTC Could Turn Bearish Below $60K? Furthermore, the market has
observed subdued activity in the spot Bitcoin exchange-traded funds
(ETFs). Data from Soso Value indicates minimal net inflows or
outflows, with Bitwise Bitcoin ETF being the only issuer that
experienced inflows yesterday. On May 8, the total net inflow of
Bitcoin spot ETF was $11.5409 million. Grayscale ETF GBTC has no
inflows and outflows. Bitwise ETF BITB saw a single-day net inflow
of $11.5409 million. The total net asset value of Bitcoin spot ETFs
is $51.504 billion. https://t.co/OkjFkXsACa — Wu Blockchain
(@WuBlockchain) May 9, 2024 This trend could signify a cooling
interest in Bitcoin investments or a shift in investor strategy
following the recent price and mining adjustments. Feature image
from Unsplash, Chart from TradingView
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