Bitcoin mining difficulty interrupts the decline - ForkLog: cryptocurrencies, AI, singularity, the future

# Bitcoin mining difficulty has halted its decline

On December 25, as a result of another recalculation, the mining difficulty of the first cryptocurrency increased by a slight 0.04% — to 148.26 T.

Source: CloverPool. After reaching a historic high of 155.97 T on October 29, the indicator recorded three consecutive decreases: by 2.37%, 1.95%, and 0.74%.

Meanwhile, the Bitcoin hash rate remained above 1 ZH/s. According to Glassnode, the smoothed seven-day moving average is around ~1.06 ZH/s.

Source: Glassnode. The cautious growth in difficulty indicates that recent reductions in the network’s computational power have not had a significant impact on miners’ activity, noted in TheMinerMag. The hash rate collapse in mid-December was linked by some observers to the Chinese authorities’ closure of Bitcoin farms in the Xinjiang Uygur Autonomous Region. Others pointed to several accompanying factors, including cold weather in the US.

The reduction in network capacity was temporary, although VanEck analysts even declared miner capitulation, with miners shutting down unprofitable equipment.

According to TheMinerMag, the network difficulty has adjusted approximately 4% from its maximum. The digital gold prices have lost about 20% during this period. Historically, such divergence has typically led to the exit of weaker players from the market.

“So far, this capitulation has not materialized. The limited difficulty decrease and stability of the hash rate indicate that the network is coping with the economic stress without large-scale shutdowns,” — industry experts emphasized.

The stabilization of blockchain’s technical parameters means that the hash price will remain around $38 per PH/s per day, continuing to exert pressure on the mining economy.

Source: Hashrate Index. Recall that in December, institutional investors began buying Bitcoin faster than miners could produce coins.