Bitcoin Mining Difficulty Sees Major Drop Amid Post-Halving Adjustments

Bitcoin mining difficulty experienced a significant 7.8% drop, reaching levels not seen since before the April halving event. This adjustment marks the largest difficulty drop since the collapse of crypto exchange FTX in 2022. Data from Coinwarz indicates that Bitcoin’s mining difficulty fell from 83.6 terahashes per second (TH/s) to 79.50 TH/s.  according to Coindesk.

CryptoQuant head of research Julio Moreno noted that miners’ daily revenues have plummeted from $78 million pre-halving to $26 million currently. The decline in mining difficulty is seen as a result of some miners turning off their equipment due to lower profitability. This downward adjustment can benefit smaller miners and potentially lead to profits for mining farms that were previously unable to compete.

Miners have been a major source of Bitcoin selling pressure, with over $1 billion worth of BTC sold in June. The selling pressure from the defunct Mt. Gox and a German government entity has further impacted the market, causing Bitcoin prices to drop as low as $53,500 last week. 

The lower mining difficulty provides a reprieve for miners facing a profit squeeze due to the halving event. However, only a few popular mining machines remain profitable at current prices, potentially signaling a local bottom for Bitcoin.