Recent data shows that Bitcoin mining difficulty is down and has hit its lowest levels since May. This is significant considering what this could mean for the Bitcoin ecosystem, especially Bitcoin price.
Bitcoin mining difficulty drops to 79.5 trillion
Data From CoinWarz it appears that: Bitcoin mining difficulty It dropped to 79.5 tons at block 851,204 and has not changed in the past 24 hours. This mining difficulty has been declining for some time, with other data from CoinWarz showing it has dropped by 5% in the past 37 days.
Bitcoin mining difficulty refers to how difficult it is for Miners To extract a new block on Bitcoin NetworkDifficulty typically decreases when the computational power on the block is lower and increases when miners mine faster than the average block time of ten minutes. The recent drop in mining difficulty indicates that more miners are leaving the Bitcoin network.
This is likely due to the effects of the Bitcoin halving, which reduced Miner Rewards In half. This has reduced the revenue from their mining operations, with many miners struggling to survive, especially with the increased competition. The price of Bitcoin has fallen since split in half It didn’t help either, as the decline in the price of the main cryptocurrency also affected its income.
Bitcoin mining company f2pool recently highlighted the profitability of different categories of miners at the current Bitcoin price. male Only ASICs with a unit power of 26 watts/ton or less can make a profit in the current price range of Bitcoin.
Cryptocurrency analyst James Van Straten also Recently highlighted How the purge of “weak and inefficient miners” from the Bitcoin network continues. The recent drop in mining difficulty allegedly shows that the capitulation of miners is nearing its end. Given the low profitability that miners have faced since the halving, some have had to dump a large amount of their Bitcoin reserves to cover operating costs, and others have had to exit the Bitcoin ecosystem entirely.
What does this mean for the price of Bitcoin?
The drop in mining difficulty suggests that miner capitulation may soon end, which is positive for Bitcoin price given that selling pressure These miners put that in place. Reported Bitcoin miners sold more than 30,000 bitcoins ($2 billion) last month, which ultimately caused the leading cryptocurrency to suffer major price crashes.
Crypto expert Willy Woo also Attributed Bitcoin price action is tepid for these miners and the leading cryptocurrency will only recover when “weak miners He explained that Bitcoin must weed out weak hands for this to happen, with inefficient miners going bankrupt while other mines are forced to buy more efficient hardware.