May 9, 2024
Bitcoin Mining Difficulty
Bitcoin News

Bitcoin Mining Difficulty Drops by 5.63% to 83.15 T

Bitcoin (BTC) mining experienced a significant decline in difficulty, dropping by 5.63% to 83.15 T on May 9, according to BTC.com. This level matches the difficulty recorded during the 2022 bear market, which saw a series of bankruptcies, including the collapse of Terra and FTX.

Decrease in Hashrate Indicates Miner Shutdowns

The average hashrate over a two-week period fell to 595 EH/s from 630 EH/s since the last adjustment. This decline suggests that some miners may have shut down their equipment. This was because mining operations became unprofitable following the recent Bitcoin halving.

Bitcoin Mining Difficulty. Source: BTC.com

Block Reward Halving Impacting Miner Income

Following the block reward halving on April 20, which reduced the reward from 6.25 BTC to 3.125 BTC, mining difficulty initially surged due to high network fees.

However, miners’ income remained relatively unaffected by the halving itself. Nonetheless, daily revenue for Bitcoin miners dropped to levels not seen since October 2023. It reached a total income of $26.38 million on May 3, as per Blockchain.com data.

Ki Young Ju, the founder and CEO of CryptoQuant, noted that despite the decrease in mining difficulty and revenue, there are no signs of capitulation among miners.

Ju speculated that Bitcoin’s price would need to reach around $80,000 to provide sufficient profitability for miners following the halving of the block reward.

The next adjustment in the bitcoin mining difficulty is scheduled for May 23, with a predicted drawdown of 0.19%. This adjustment will be closely watched by market observers and miners alike. This will provide further insights into the state of Bitcoin mining operations amidst evolving market conditions.

Image by freepik

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