Bitcoin mining difficulty adjustments happen every 2016 blocks or every two weeks and. Historically major decreases in mining difficulty have been followed by drops in bitcoin s price as seen on may 20 when difficulty reduced by 6 bitcoin could have more room to fall as mining difficulty drops for the second time since the halving. This is significant as the increased operational cost to miners could pressure them to sell more btc to offset.
That means the cost to mine bitcoin btc will increase significantly in a short period of time. Many miners expected bitcoin s price to rise sharply after the halving said kevin pan ceo. Bitcoin mining difficulty sets new record high 2 months after halving.
Therefore mining difficulty follows prices. As with any asset more people get interested in it when prices are going up. The higher the price the more people get interested in bitcoin mining.
To justify the difficulty prices tend to go up. The higher the mining difficulty the less bitcoin you get for a fixed amount of power. And given tuesday s brutal rejection at 10 4k which saw btc fall 11 in a matter of minutes all eyes are on what bitcoin will do next.
That being so a drop in mining difficulty could signal an incoming drop in price. Historical data shows that price and mining difficulty has elements of positive correlation. Given the frequent changes in bitcoin difficulty adjustments up and down use our btc mining calculator with difficulty to calculate bitcoin mining profits.
