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Highlights
- Bitcoin Mining has resetted with difficulty now lower
- This mining difficulty comes shortly after the last halving event
- Current price outlook is bearish but the market dynamics might change this trend soon
Data from BTC.com shows there is a significant plunge in Bitcoin (BTC) mining difficulty. This new development caused the hash rate to drop by 5.63% to 83.15 trillion. The adjustment took place at a block height of 842,688, with the average hash rate coming in at 646.96 EH/s.
Bitcoin Sees Increased Miners’ Activities Pre-halving
The mining difficulty usually fluctuates sideways, indicating how hard or easy miners can verify transactions and add them to a block for rewards. It is usually computed on a fortnight basis and a rise or drop is determined by the number of computers that plug in to mine the flagship digital currency. Hence, a large number of computers may stir a rise in hashrate while fewer computers lead to a drop.
The average network hash rate of 572.18 EH/s over the past seven days is notably the biggest plunge recorded since December 2022. A further drop from this could result in additional output for miners with the same resources but amplified profit.
The result of such favorable mining difficulty is evident in the earnings reports that crypto-mining firms like Core Scientific have published thus far. In Q1, 2024, many of their revenues have seen new high levels.
Last month, Bitcoin mining difficulty reached as high as 89.39 trillion hash. This was only a few weeks away from the Bitcoin halving event. The move was expected considering that the number of miners rushing to mine BTC in preparation for the halving increased considerably.
The higher hash rate is a way to ensure that security is maintained on the network.
Bitcoin Price Might See Significant Impact
Usually, miners anticipate the four-year recurring event without enthusiasm because it cuts down the rate at which new coins are created on the blockchain. Therefore, they accumulate as much BTC as possible before the halving finally comes. This triggers the rise in mining activity and also mining difficulty.
The new mining difficulty rate could be perceived as a reset following the completion of the much-anticipated Bitcoin halving event. With less difficulty, the rate at which new coins are generated becomes less tedious, forcing more miners to produce more. The relatively higher supply boom will help meet market demand, sustain liquidity and push price higher.
Despite this potential, Bitcoin is currently trading at $61,978.24 with a 0.78% drop in the last 24 hours, according to CoinMarketCap data. In all, other metrics could push the price of Bitcoin to new levels with projections of a retest of its past All-Time High (ATH).
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