The BTC difficulty adjustment could have a strong influence on the miners and could end up boosting the price. The benchmark cryptocurrency just closed the first large green weekly candle for three months so let’s see what it can mean for the price in the bitcoin price news today.
The BTC difficulty adjustment on the bitcoin network is a measure of how hard it is to find a hash below the given target and the valid blocks have to have a hash below the global block target. However, there’s also a share difficulty which goes the same for mining pools and their ability to find a hash that is lower than the global target. The mining difficulty adjusts automatically every 2,016 blocks on the network depending on the number of miners and the combination of time that it took to find the next 2,016 blocks. The hash rates have a huge influence over the difficulty and they have been increasing recently which is why there’s a need for an increase.
According to the reports, the BTC difficulty adjustment is currently at 13.8 T which is the highest ever level. It will also get increased again around 8 percent to 15 T which will make it way harder to validate new blocks. This is interesting because it is a large adjustment compared to the 1-2% that is usually changing. The hash rate has also reached an all-time high recently and this only shows the notion that miners are capitulating in the run-up to the next halving in May. Since there’s a war between the Chinese and Western miners, the rate is kept high and the Chinese mining pool that now dominates the ecosystem can continue to keep bitcoin hash rates high and get rid of the Western competitors who pay high bills for electricity.
The higher difficulty and the hash rate will make it even harder to generate mining profits and this will be impacted much more after the block reward halves in four months. Bitcoin remained over the $8,000 level and closed its weekly bullish candle since China’s blockchain drive shot up the prices. Over the week, Bitcoin consolidated around $8,100 where it is now trading so now the long-term technical indicators are turning quite bullish.
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