Bitcoin Mining Difficulty Drops by 9%, Is Price About to Follow?

2020-6-6 13:23

The Bitcoin blockchain saw its mining dificulty adjust downwards on June 5. It has now become easier to mine BTC. Historical data shows that price and mining difficulty has elements of positive correlation. That being so, a drop in mining difficulty could signal an incoming drop in price. And given Tuesday’s brutal rejection at $10.4k, which saw BTC fall 11% in a matter of minutes, all eyes are on what Bitcoin will do next. Bitcoin mining difficulty drops -9.29% data: @glassnode pic.twitter.com/ONEy2PaQU9 — Unfolded (@cryptounfolded) June 4, 2020 Inefficient Bitcoin Miners Are Being Squeezed 2020’s most talked-about event to date was the Bitcoin halving. Now the dust has settled, and we’ve undergone a month or so of reduced supply, what has changed? To begin with, many inefficient miners were forced to turn off their machines, which led to an immediate fall in hashing power on the Bitcoin network. But according to Blockware Solutions, operators of the older Antminer S9s, who have access to cheap electricity, can still afford to stay afloat. They estimate that S9s are still a sizable force, making up as much as 30% of the network. On that note, Blockware Solutions CEO, Matt D’Souza made the point that there’s a delicate balance between BTC price and the running of older mining equipment. He said the post halving price will determine whether the remaining S9 operators will be eventually forced out altogether: “If Bitcoin is below $9,000, then margins will be poor for miners. If Bitcoin remains at $7,200, then many miners will need to shut off. It will likely be about 27%–35% of the network if Bitcoin remains below 9,000 for several weeks post-halving.” The Difficulty Adjustment Happened Yesterday However, one saving grace for S9 operators was the downward difficulty adjustment that occurred yesterday on the BTC network. Mining difficulty gets adjusted every 2,016 blocks, or every two weeks, in what is a self-sustaining process. By assessing the time it took to create the previous 2,016 blocks, an overly efficient block production increases difficulty. Whereas taking longer than two weeks, to produce the 2,016 blocks, triggers a difficulty adjustment downwards. Analysis of data from Glassnode shows some correlation between price and difficulty. For example, in November 19, the start of a downtrend was followed by a drop in difficulty. This was also the case more recently in late February 20. Chart showing Bitcoin mining difficulty with BTC price. (Source: glassnode.com) Yesterday saw a 9% drop in difficulty, the second largest fall in 2020. But what’s unusual is that the previous two examples, in November 19 and February 20, had the price starting to downtrend before the difficulty adjusted downwards. This time around, we are still in an uptrend, as evidenced by previous higher lows on the price chart. The only conclusion to draw at the present time is that the correlation between price and difficulty is not a strong one. This is especially evident from June 19 to November 19, when falling price coincided with rising difficulty, the opposite of expectation. However, given Bitcoin’s unpredictability, as well as the uncertain macro outlook, we should all brace for the unexpected.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Speed Mining Service (SMS) на Currencies.ru

$ 1.9622 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $1.9622 - H: $1.9622
Капитализация $205.406k Rank 99999
Доступно / Всего 104.68k SMS

mining price bitcoin difficulty mine btc easier

mining price → Результатов: 126


If Bitcoin’s Price Follows BTC’s Mining Hash Rate, What’s the Significance of Snapping a 19 Month Dry Streak

Bitcoin Miners’ Gross Margins See an Uptake First Time since BTC Price Boom While the revenues of Bitcoin miners fell to the lowest since August 2017, this month did see a small uptake in the gross margins of miners’ first time since the price of Bitcoin boomed that has been getting squeezed until recently. Bitcoin […]

2019-3-11 01:22


Looking Into The Electroneum Price (ETN Token) After Recent Mobile Mining News

Number Of Electroneum Mobile Miners Increases Highly But Price Remains Firm Much like other cryptocurrencies available in the industry, users of Electroneum – a mobile-based cryptocurrency launched in 2017 – are somewhat dispirited with the frequency and nature of their transactions as nothing seems to have changed in recent times. No Significant Change In Price […]

2019-3-4 20:58


Фото:

Electroneum Unveils Low-Cost Groundbreaking Cryptocurrency Mining Smartphone  

The smartphone that is projected to cost only $80 is a fully functional handset with all the regular features you expect in an ordinary handset for that price. However, the phone has been preconfigured with Electroneum’s mobile crypto mining App and the “cloud mining” technology that enables users to earn ETN tokens via the AppRead MoreRead More.

2019-2-27 14:00


Bitcoin Cash Price Analysis: BCH/USD Rally Depends on Breakout Above $150

Latest Bitcoin Cash News Plainly put, 2018 was a year to forget for the world’s leading ASIC manufacturer, Bitmain. While prices fell across the board, not only did Consensys resized and re-calibrated their plans but Bitmain was forced to put off what they had previously dubbed as the largest digital asset mining facility in the […]

2019-1-24 17:12


New Unit 42 Research Shows “Rocke” Crypto Mining Malware Has Started To Be “Self-Aware”

Crypto Mining Malware Has Started To Be “Self-Aware” Crypto mining malware is one of the worst threats that people are facing right now. With the rise in the price of crypto's (especially Bitcoin and Monero), many malware appeared to use people’s computers to mine tokens and make a profit. Now, The Next Web’s Hard Fork […]

2019-1-17 20:57