Bitcoin Mining Difficulty Has Dropped! What Will Be the Effect on BTC Price?

Bitcoin (BTC) As the price continued to trade below $17,000, the mining difficulty, which is an important data for miners, decreased.

BTC. According to data from com, there was a 3.59% decrease in Bitcoin mining difficulty compared to the last adjustment made.

By early December 2022 BTC With the 7.32% decrease in mining difficulty, the mining difficulty, which was a small hope for miners, experienced a 3.27% increase in the adjustment made on December 19th.

The last drop erased the increase in difficulty experienced in December, and with this decrease, the difficulty level became 34 trillion.

Behind this decrease in Bitcoin mining difficulty, especially BTC It was stated that the mining companies had a difficult time financially due to the high costs despite the low price.

It was also evaluated that the bankruptcy of some mining companies and the fact that some miners unplugged their devices due to the heavy snowstorm in the USA recently, contributed to the decrease in the difficulty level.

Because power cuts are experienced in the windy and cold winter US states such as Texas, where miners are concentrated. Due to these interruptions, mining companies have to turn off their devices. This leads to a decrease in miners and a decrease in mining difficulty.

which is 34 trillion bitcoin When the mining difficulty level is compared to last year, the difficulty was found to be 24.37 trillion on January 8, 2022. As such, the current mining difficulty is about 40% higher than last year.

What Will Be the Effect on Bitcoin Price?

There is no close correlation between BTC price and Bitcoin mining difficulty and hash rate. Increasing network difficulty makes the network more secure and increases competition among miners.

When we look at the historical data, we see that there is a need for large fluctuations that can activate the algorithms for the change in the difficulty level to be reflected on the BTC price.