Bitcoin miners could see a positive development in the near future as data indicates a 7.8% decrease in power requirements to mine blocks over the weekend. The mining difficulty, a key metric in the Bitcoin network, dropped from 83.6 terahash per second (TH/s) to 79.50 TH/s on June 5, reaching levels last seen in March before the halving event in April. The mining difficulty is adjusted every two weeks based on the network’s performance to regulate the speed of block generation.
This recent drop in difficulty marks one of the largest adjustments since the FTX collapse in 2022, which caused a significant impact on Bitcoin prices. The network hashrate also experienced a 7.8% drawdown, affecting miners’ profitability as daily revenues decreased from $78 million pre-halving to $26 million currently.
With the decline in mining difficulty, there is a proportional decrease in the network’s hashing power, which can benefit smaller miners and previously closed mining operations. Miners play a crucial role in the Bitcoin network by using computational power to solve complex algorithms and add blocks to the blockchain, earning rewards in the process.
During June, miners were a significant source of selling pressure on Bitcoin, with over $1 billion worth of BTC sold as prices fluctuated between $65,000 and $70,000. Additionally, external factors like selling pressure from defunct exchanges and government entities have further impacted BTC prices, dropping to as low as $53,500 last week.
Looking ahead, it is anticipated that Bitcoin hashrate and difficulty may continue to decrease during the summer months in North America as miners adjust their operations. This reduction in competition could offer relief to miners facing profitability challenges following the halving event.
Despite these challenges, some of the most efficient mining machines are still profitable for users at current prices, potentially indicating a stabilization point for BTC prices. The recent mining difficulty drop signals a shift in the Bitcoin network dynamics, impacting miners and the overall cryptocurrency market.