Second Largest Drop In Bitcoin Mining Difficulty
In a recent report by BTC.com, it seems that the mining difficulty of Bitcoin has experienced the largest drop in its lifetime, experiencing a -15% adjustment.
Mining difficulty is relative measure of how difficult it is to find a new block. This measure is adjusted every 2016 blocks as a function of how much hashing power has been deployed by the network of miners.
A recent adjustment of Bitcoin’s hashing difficulty was preceded by a massive market drop, with Bitcoin losing more than a third of its price since November 14, according to CoinMarketCap. Financial experts have attributed the market collapse to regulatory pressure, the hash rate war after controversial Bitcoin Cash hard fork, and the “terrible” condition of global markets.
According to XDEX chief analyst Fernando Ulrich, this 15 percent difficulty drop is the second-largest in Bitcoin’s history and the largest since November 1, 2011, when the difficulty dropped by 18 percent.
Prior to November 18, the last time the difficulty decreased was on July 15, and such decreases have been a rare occurrence over the past several years. At a present value of 37.7 EH/s, the BTC hash rate is down 39 percent from the single-day high of 61.9 EH/s it set in late August. It is also down approximately 31 percent from the weekly average peak it set on October 1.
Bitcoin is currently trading at $3,868.15 after a 3.61% loss in the last 24 hours. Though Bitcoin managed to hold a spot over the weekend at over $4,000, they have fallen short today.