Recent data shows that the bitcoin-price-will-recover-again/#:~:text=Willy%20Woo%20mentioned%20in%20an,high%20costs%20go%20into%20bankruptcy.”>bitcoin Mining Difficulty is on the decline and has hit its lowest level since May. This is significant considering what it could mean for the bitcoin ecosystem, specifically bitcoin-price-tragic-june/”>bitcoin Price.
bitcoin mining difficulty drops to 79.5 T
bitcoin/difficulty-chart”>Data from CoinWarz shows that bitcoin-mining-difficulty-soars-7-what-does-it-mean/”>bitcoin Mining Difficulty It has dropped to 79.5 T at block 851,204 and has not changed in the past 24 hours. This mining difficulty has continued to fall for a while, and other data from CoinWarz shows it is down 5% over the past seven and 30 days.
bitcoin mining difficulty refers to how difficult it is for bitcoin-mining-may-no-longer/”>miners to mine a new block in the bitcoin-network-strengthens-hashrate-all-time-high/”>bitcoin NetworkDifficulty typically decreases when there is less computing power on the network and increases 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 reduced bitcoin-miners-north-american/”>miners rewards in 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 bitcoin-bull-market-glassnode/”>halve It hasn't helped either, as the falling price of the flagship cryptocurrency has also affected its revenue.
bitcoin mining company f2pool recently highlighted the profitability of several categories of miners at the current bitcoin price. The mining company x.com/f2pool_official/status/1809155768874328456″>noted that only ASICs with a unit power of 26 W/T or less can generate profits in the current bitcoin price range.
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Cryptoanalyst James Van Straten also x.com/jvs_btc/status/1809521488610926836″>Recently Featured how “weak and inefficient miners” continue to be eliminated from the bitcoin network. He claimed that the recent drop in mining difficulty shows that miner capitulation is closer to being over. Due to the low profitability that miners have faced since the halving, some have had to dump a significant amount of their bitcoin reserves to cover operational costs, and others have had to leave the bitcoin ecosystem altogether.
What this means for the price of bitcoin
The decrease in mining difficulty suggests that miner capitulation could end soon, which is positive for the bitcoin price considering the bitcoin-miner-hodler-selling-pressure-drying-data/”>Selling pressure These miners have gotten to work. Bitcoinist bitcoin-price-tragic-june/”>reported that bitcoin miners sold over 30,000 btc ($2 billion) last month, ultimately causing the flagship cryptocurrency to experience significant price drops.
Cryptocurrency expert Willy Woo also bitcoin-price-will-recover-again/#:~:text=Willy%20Woo%20mentioned%20in%20an,high%20costs%20go%20into%20bankruptcy.”>attributed bitcoin's tepid price action to these miners and mentioned that the flagship cryptocurrency will only recover when the “bitcoin-miners-north-american/”>weak miners dies and the hash rate recovers.” He claimed that bitcoin would have to get rid of weak hands for this to happen, with inefficient miners going out of business while other mines are forced to buy more efficient hardware.
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