The latest data shows that Bitcoin Mining Difficulty is in decline and has reached its lowest level since May. This is significant considering what this could mean for the Bitcoin ecosystem, in particular Bitcoin price.
Bitcoin mining difficulty drops to 79.5T
Data from CoinWarz shows that Bitcoin Mining Difficulty It dropped to 79.5T at block 851,204 and has not changed in the last 24 hours. This mining difficulty has continued to decline for some time, with further data from CoinWarz showing that it has dropped by 5% over the last seven and 30 days.
Bitcoin mining difficulty refers to how challenging it is for mining extract a recent block on Bitcoin Network. Difficulty tends to drop when there is less computing power, and rises when miners mine faster than the average block time of ten minutes. The recent drop in mining difficulty suggests that more miners are leaving the Bitcoin network.
This is most likely due to the effects of the Bitcoin halving which caused a drop awards for miners by half. This has reduced the revenue from their mining operations, and many miners are struggling to stay afloat, especially with increased competition. Bitcoin’s price action since division in half This didn’t lend a hand either, as the drop in the price of the flagship cryptocurrency also affected their income.
Bitcoin miner f2pool recently highlighted the profitability of different mining categories at the current Bitcoin price. Mining company recorded that only ASICs with a unit power of 26 W/T or less can be profitable at the current Bitcoin price.
Cryptocurrency analyst James Van Straten also recently featured as “weak and inefficient miners” continue to be removed from the Bitcoin network. He argued that the recent drop in mining difficulty shows that the capitulation of miners is getting closer to the end. Due to the low profitability that miners have faced since the halving, some have had to get rid of a significant portion of their Bitcoin reserves to cover operating costs, while others have had to leave the Bitcoin ecosystem entirely.
What does this mean for the price of bitcoin
The drop in mining difficulty suggests that the capitulation of miners may end soon, which is good for the bitcoin price given sales pressure these miners founded it. Bitcoinist reported that Bitcoin miners sold over 30,000 BTC ($2 billion) last month, ultimately causing significant price collapses for the flagship cryptocurrency.
Cryptocurrency expert Willy Woo also assigned Bitcoin’s inactive price action for these miners and the mention that the flagship cryptocurrency will only regain its footing when “frail miners die and the hashrate will recover.” He stated that Bitcoin would need to get rid of the frail hands for this to happen, and incapable miners would go bankrupt, while other pools would be forced to buy more productive equipment.
