Bitcoin (BTC) Miners 'Comfortably' Shrug Off Huge Difficulty Drop: Analysts

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Sun, 04/12/2020 - 15:39
Vladislav Sopov
Bitcoin (BTC) network hash rate and difficulty are on their way to recovering from its historical March 2020 drop. Has miner capitulation been postponed?
Bitcoin (BTC) Miners 'Comfortably' Shrug Off Huge Difficulty Drop: Analysts
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According to statistics provided by industry-level on-chain Coinmetrics analysts, miners have enough momentum to mitigate the losses caused by Black Thursday.

Bitcoin (BTC) Death Spiral Postponed

According to the Coinmetrics announcement, the second largest drop in Bitcoin (BTC) history isn't far from adjusting as miners strengthen their efforts. 

The Bitcoin (BTC) hash rate, the estimated number of terahashes per second produced by all Bitcoin (BTC) mining rigs, has already recovered to the ranges it was in before the market crash. The network difficulty, which is an indicator of how difficult it is to mine a new Bitcoin (BTC) block, is also doing well and has bounced back 6%. At press time, Bitcoin (BTC) network difficulty was near its January level, sitting at 14.715 TH/s.

Bitcoin (BTC) Mining Indicators recovered from Black Thursday
Image by Blockchain.com

Such positive statistics can provide confidence for a community that believe it's too early to bury Bitcoin (BTC). A 'death spiral', which is a hypothetical scenario for the overall mining capitulation, has been postponed one more time. 

Will Bitcoin (BTC) Price also Recover?

Trader and analyst PlanB has already demonstrated the data on his 'stock-to-flow' model chart. According to this model, a crypto king may reach $100,000 this year.

However, as U.Today previously reported, some analysts are sure that Bitcoin (BTC) is unaffected by the hash rate movements.

Related Bitcoin (BTC) Price To Be Unaffected By Hashrate Swings: Analyst
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Bitcoin (BTC) Price To Be Unaffected By Hashrate Swings: Analyst

Jason Deane of Quantum Economics announced that it is driven only by adoption, usage, and classic supply/demand laws rather than by some miner statistics. 

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)