Bitcoin Difficulty Decreases for the First Time Since September
On December 9, 2023, at block height 820,512, Bitcoin’s difficulty rating decreased by 0.96%. This is the first decline since September 19, 2023, breaking a streak of six consecutive difficulty hikes. Despite this decrease, Bitcoin’s total hashrate has been trending downwards over the past six days.
Bitcoin Hashrate Declines as Difficulty Reduces
For the first time in the past six adjustments, Bitcoin’s difficulty has experienced a 0.96% reduction at block height 820,512. This decrease will remain in effect for the next 12 days, until December 23, 2023. Although this is beneficial for miners, making it easier for them to find block rewards, it has not led to an increase in the hashrate.
Hashrate Decline Precedes Difficulty Adjustment
Prior to the recent difficulty adjustment, the hashrate of Bitcoin began to decline. On December 4, 2023, the seven-day average hashrate was at 507 exahash per second (EH/s). As of December 11, 2023, the average has dropped to 472 EH/s, indicating a 6.9% fall in just three days.
Hash Price Decreases Alongside Hashrate
The current hash price of Bitcoin is lower than the peak reached on December 6, 2023. The seven-day average shows a decline to $88.41 per petahash per second (PH/s), which is over a 20% reduction from the previous rate of over $111 per PH/s.
Miners Preparing for the Halving
In light of the recent difficulty and hash price downturn, Bitcoin miners are now focusing on the upcoming halving. With approximately 19,135 blocks remaining until the halving, expected to occur around April 20, 2024, miners are preparing for a significant reduction in block rewards from 6.25 BTC to 3.125 BTC per block.
Hot Take: Bitcoin Faces Challenges Amidst Declining Difficulty and Hashrate
The recent decrease in Bitcoin’s difficulty rating and decline in hashrate pose challenges for the cryptocurrency. While miners may find it easier to obtain block rewards, the lack of an increase in hashrate signifies potential obstacles ahead. Additionally, as the halving approaches, the reduction in block rewards adds to the uncertainties faced by the network. It remains to be seen how Bitcoin will navigate through these fluctuations and maintain its stability in the ever-changing crypto landscape.
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