Bitcoin Mining Difficulty Declines to Lowest Level Since 2022
 

Bitcoin mining difficulty has decreased by 5.63%, reaching 83.15 T on May 9, 2023, marking the lowest point since December 2022. This drop follows significant market shifts, including the aftermath of major bankruptcies like Terra and FTX during the bear market phase of 2022.

This adjustment in mining difficulty comes after a period of fluctuating network conditions, including the recent Bitcoin halving event on April 20, 2023. Following the halving, the block reward dropped from 6.25 BTC to 3.125 BTC, causing a temporary surge in mining difficulty due to high network fees. Despite this, miner revenue remained largely stable.
 

In the two weeks preceding the difficulty adjustment, the average hashrate fell from 630 EH/s to 595 EH/s, suggesting a reduction in mining activity. This could indicate the shutdown of equipment that became unprofitable due to the reduced block reward.
 

Although miner revenue has dropped, reaching $26.38 million per day as of May 3, data from blockchain analytics platform CryptoQuant, provided by CEO Ki Young Ju, shows no signs of mass capitulation among miners. Ju estimates that miners' profitability could increase significantly if Bitcoin prices reach around $80,000, thus making mining operations more profitable.
 

The next mining difficulty adjustment is scheduled for May 23, 2023, with predictions indicating a slight decrease of 0.19%.
 

Stay tuned for further updates on Bitcoin mining and its evolving landscape.

— AccGn News Team