• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

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

Samuel Wan by Samuel Wan
8 months ago
in Bitcoin
Reading Time: 2min read
Bitcoin Mining Difficulty Drops by 9%, Is Price About to Follow?
Advertisement
Listen to Article

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

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

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.

Tags: bitcoin miningBitcoin mining DifficultybtcusdBTCUSDT
TweetShare11
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
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.

Related Posts

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Trouble for Bitcoin as 3 On-Chain Indicators Point to Potential Sell-Offs

18 hours ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Severe Liquidity Shock Ahead for Bitcoin Market, Warns JPMorgan

20 hours ago
Bitcoin Heads Towards $35,000 as Biden Stimulus Hurts US Dollar

Bitcoin Heads Towards $35,000 as Biden Stimulus Hurts US Dollar

2 days ago
MicroStrategy Boss: No-One Can Take Your Bitcoin, Not Even The Taxman

MicroStrategy Boss: No-One Can Take Your Bitcoin, Not Even The Taxman

2 days ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin En Route to $30,000 After Price Falls ~12% in a Day; Here’s Why

6 days ago
altcoins bitcoin crypto alt season altcoin xrp ethereum ripple litecoin

Centralized Wealth: The Downside To Institutional Bitcoin Buying

1 week ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Changelly

Changelly

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

Coinbase Custody to Support Dvision Network (DVI)

January 26, 2021

A New Year – New Opportunities in Crypto

January 26, 2021

1xBit Introduces New Live Casino Tournament DEAL OR NO DEAL

January 26, 2021

Newsletter Signup


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.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +
  • Play Games
  • BUY BITCOIN

© 2020 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.