NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Mining Difficulty Drops by 9%, Is Price About to Follow?

Samuel Wan
Samuel Wan
1 year ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The Bitcoin blockchain saw its mining dificulty adjust downwards on June 5. It has now become easier to mine BTC. Historical data shows that price and mining difficulty has elements of positive correlation.

That being so, a drop in mining difficulty could signal an incoming drop in price. And given Tuesday’s brutal rejection at $10.4k, which saw BTC fall 11% in a matter of minutes, all eyes are on what Bitcoin will do next.

Bitcoin mining difficulty drops -9.29%

data: @glassnode pic.twitter.com/ONEy2PaQU9

— unfolded. (@cryptounfolded) June 4, 2020

Inefficient Bitcoin Miners Are Being Squeezed

2020’s most talked-about event to date was the Bitcoin halving. Now the dust has settled, and we’ve undergone a month or so of reduced supply, what has changed?

To begin with, many inefficient miners were forced to turn off their machines, which led to an immediate fall in hashing power on the Bitcoin network.

But according to Blockware Solutions, operators of the older Antminer S9s, who have access to cheap electricity, can still afford to stay afloat. They estimate that S9s are still a sizable force, making up as much as 30% of the network.

On that note, Blockware Solutions CEO, Matt D’Souza made the point that there’s a delicate balance between BTC price and the running of older mining equipment. He said the post halving price will determine whether the remaining S9 operators will be eventually forced out altogether:

“If Bitcoin is below $9,000, then margins will be poor for miners. If Bitcoin remains at $7,200, then many miners will need to shut off. It will likely be about 27%–35% of the network if Bitcoin remains below 9,000 for several weeks post-halving.”

The Difficulty Adjustment Happened Yesterday

However, one saving grace for S9 operators was the downward difficulty adjustment that occurred yesterday on the BTC network.

Mining difficulty gets adjusted every 2,016 blocks, or every two weeks, in what is a self-sustaining process.

By assessing the time it took to create the previous 2,016 blocks, an overly efficient block production increases difficulty. Whereas taking longer than two weeks, to produce the 2,016 blocks, triggers a difficulty adjustment downwards.

Analysis of data from Glassnode shows some correlation between price and difficulty. For example, in November 19, the start of a downtrend was followed by a drop in difficulty. This was also the case more recently in late February 20.

Bitcoin mining difficulty with price
Chart showing Bitcoin mining difficulty with BTC price. (Source: glassnode.com)

Yesterday saw a 9% drop in difficulty, the second largest fall in 2020. But what’s unusual is that the previous two examples, in November 19 and February 20, had the price starting to downtrend before the difficulty adjusted downwards.

This time around, we are still in an uptrend, as evidenced by previous higher lows on the price chart.

The only conclusion to draw at the present time is that the correlation between price and difficulty is not a strong one. This is especially evident from June 19 to November 19, when falling price coincided with rising difficulty, the opposite of expectation.

However, given Bitcoin’s unpredictability, as well as the uncertain macro outlook, we should all brace for the unexpected.

Tweet123Share207ShareSend
Samuel Wan
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Dogecoin price news

Dogecoin’s Quiet Setup Could Detonate Shorty, Says Analyst—Here’s The Target

Dogecoin was changing hands near $0.174 in European trading on Thursday, extending a two-day rebound that began when buyers twice...

Jake Simmons 5 hours ago
Bitcoin

The Silent Bitcoin Accumulation: Public Companies’ Surprising H1 2025 Lead

According to recent data, public companies have raced ahead of Bitcoin spot ETF issuers by snapping up more than twice...

Christian Encila 8 hours ago

Ethereum Stagna: I Dati On-Chain Mostrano Accumulo da Parte delle Whale

Ethereum continua a mostrare un movimento di prezzo limitato verso l’alto, nonostante i guadagni registrati la scorsa settimana. Negli ultimi...

clararosati 10 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin Needs $140K To Match Peak Profits, On-Chain Data Shows

Christian Encila 29 minutes ago
Ethereum Looks Strong Despite Volatility – $10,000 Price Target Gains Momentum

Ethereum Looks Strong Despite Volatility – $10,000 Price Target Gains Momentum

Sebastian Villafuerte 1 hour ago
Bitcoin

TD9 Setup On Bitcoin Price Chart Suggests It Could Take 4 Years To Reach $149,000 — Details

Scott Matherson 2 hours ago

Premium Sponsors

Press Releases

  • Top kryptoměna ke koupi dříve, než vzroste o 2 200 %, podle Cathie Wood

    Top kryptoměna ke koupi dříve, než vzroste o 2 200 %...

    17 minutes ago
  • The smartest way to make money in 2025: Invest in cloud...

    7 hours ago
  • Od Bitcoinu k BTC Bull: Kde leží skutečný potenciál?

    ...

    7 hours ago
  • Bitcoin vs. Gold: Which Is the Best Investment In 2025?

    7 hours ago
  • Profit of $5,735, senior trader uses Ripple (XRP) to open...

    7 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.