Main navigation

Bitcoin's Mining Difficulty Records Second Largest Drop in 2022 Amid Price Correction

News
Thu, 06/23/2022 - 08:26
article image
Alex Dovbnya
Bitcoin's mining difficulty has recorded its fifth negative adjustment in 2022
Bitcoin's Mining Difficulty Records Second Largest Drop in 2022 Amid Price Correction
Cover image via stock.adobe.com
Read U.TODAY on
Google News

According to data provided by BTC.com, Bitcoin’s mining difficulty has declined by 2.35% over the past two weeks, which marks the second biggest negative adjustment since the start of 2022.

Mining difficulty updates roughly every two weeks to adjust the pace of block production.

Overall, Bitcoin has now recorded a total of five negative adjustments this year.

Mining difficulty tends to decline dramatically during major market downturns. Miners, who are no longer able to turn a profit or even break even, are forced to switch off their equipment. For instance, Bitcoin's mining difficulty plunged by more than 15% during the coldest days of the crypto winter of 2018 amid the mass exodus of miners.

Related
Terra's Do Kwon Says He Has Been "Devastated" by Project's Collapse
 Last June, Bitcoin's mining difficulty collapsed by 27.9% within two weeks, recording the biggest drop in history after the cryptocurrency's hashrate tumbled due to China's mining ban.

However, the metric managed to recover and ended up reaching a new all-time high in January. In early May, Bitcoin's mining difficulty peaked as high as 31.25 trillion on the cusp of a significant market correction.

Bitcoin is currently trading at just $20,400, shedding more than 55% of its value since the start of the year.

According to data provided by Arcane Research, Bitcoin mining firms sold all of the coins they produced in May, which reflects their bearish sentiment.

Miners remain among the most influential market participants due to their vast holdings. Hence, many fear that they may exacerbate the current sell-off.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.