Quick Takeaways
- Bitcoin’s mining difficulty dropped by over 10%, the second-largest decline this year, signaling fewer miners and reduced network activity.
- The Bitcoin hash rate has fallen below 790 EH/s from over 1.2 ZH/s a year ago, indicating decreased computational power.
- Miners are under severe pressure due to market weakness, leading many to shut off their machines and a “stress zone” in the network.
- Key metrics like the Puell Multiple and Miner Capitulation have declined sharply, reflecting increased miner strain and network stress.
Bitcoin Mining Difficulty Drops 10% as Pressure on Miners Grows
Difficulty Adjustment and Network Impact
Over the weekend, Bitcoin’s mining difficulty decreased by just over 10%. This change is significant because it reflects a shift in how hard it is for miners to add new blocks. The difficulty adjusts every two weeks to keep the average time between blocks at about 10 minutes. When more miners join, the difficulty rises; when miners leave, it lowers. This time, fewer miners are operating, so the network made it easier to mine new blocks. The last large drop was 11.16% in February, making this the second biggest so far this year. The difficulty fell from nearly 138 trillion to below 125 trillion. Experts predict that the next adjustment could be even more difficult, with estimates suggesting a 16% decline.
Miners Under Growing Pressure
The decline in both difficulty and hash rate signals that some miners have shut down their machines. The hash rate measures how much computing power is used on the Bitcoin network. It has dropped from over 1.2 zettahashes per second a year ago to under 790 exahashes. These decreases suggest that miners face financial stress due to market conditions. Recently, the Puell Multiple—a key indicator of miner revenue—fell 11% in less than two weeks. Additionally, the Miner Capitulation metric, which shows how much miners have sold off their Bitcoin, declined by 21%. These signals indicate that many miners are feeling increased pressure as revenue drops and costs remain high.
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Disclaimer
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