On July 4, 2024, the Bitcoin network saw its second-largest decrease in mining difficulty since the beginning of the year. The difficulty dropped by 5%, declining from 83.67 trillion to 79.5 trillion.
Bitcoin Network Experiences Second Significant Difficulty Drop of the Year
Bitcoin’s mining difficulty took a notable 5% dip this week, occurring at block height 850,752 on July 4. This reduction marks the second-largest adjustment of the year, following a 5.62% decrease observed on May 9 at block height 842,688. These substantial declines have followed the fourth halving event at block height 840,000. Despite record low hashprice levels, the network’s hashrate has held steady at 582.33 exahash per second (EH/s).
Furthermore, the average block interval has averaged about ten minutes and four seconds. The decreased value of bitcoin, which directly affects hashprice levels, has placed significant pressure on miners. Over the past two months, mining revenues have dropped considerably compared to the months preceding the downturn. This has resulted in three consecutive difficulty reductions, with the first two minor drops at 0.79% and 0.05% respectively. The next difficulty retarget is scheduled for July 19, with another reduction likely on the horizon.
The successive declines in Bitcoin’s mining difficulty highlight the persistent challenges miners are grappling with, stemming from low hashprice levels and declining revenues. As the network adjusts, the upcoming retarget on July 19 may continue this trend. This period underscores the dynamic nature of Bitcoin’s ecosystem, where external factors can significantly influence operational realities and prompt adjustments that benefit miners.
What are your thoughts on the recent decrease in difficulty and its implications for bitcoin miners? Feel free to share your opinions in the comments section below.
