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HomeNewsBitcoin Mining Difficulty Sees Biggest Drop Since May, But Profits Remain Uncertain

Bitcoin Mining Difficulty Sees Biggest Drop Since May, But Profits Remain Uncertain

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The Bitcoin mining difficulty has experienced its biggest drop since May, according to data from the Hashrate Index. The 5.62% drop in mining difficulty is a significant change, but it remains to be seen how it will affect the profitability of Bitcoin miners.

Mining Difficulty on the Rise

Despite the recent drop, mining difficulty had been rising since January 2024, with the largest spike experienced in February. The highest difficulty was recorded at 88.10T between April and May, according to Coinwarz data.

Current Mining Difficulty

As of now, Bitcoin’s current mining difficulty (79.5T at block 851,050) has not changed in the last 24 hours. Coinwarz claims that the next difficulty adjustment will be on July 19, in 12 days.

Mining Profits Uncertain

FinTech expert Same Festo attributed the reduction in mining difficulty to the decline in “the initial interest of Bitcoin Runes” and this year’s Bitcoin halving. Crypto analyst James Van Straten revealed that the drop in mining difficulty would only favor large mining companies as inefficient and weak miners would be purged from the network.

Profitability for Miners

According to f2pool, only ASICs that are more efficient than 26W/T at a rate of 0.07/kWh will be profitable if prices stay above $54K. Crypto investor Peter Romano pointed out that mining company, CleanSpark Inc., had exceeded its mid-year operational hashrate target of 20EH/s.

Hashprice and Mining Difficulty

The Hashrate Index disclosed that the hashprice value is positively correlated with changes in price and transaction fee volume. However, hashprice is negatively correlated with changes in Bitcoin mining difficulty. As of the time of writing, the hashprice was $0.04737.

Miners Remain Hopeful

Despite unfavorable market metrics, Bitcoin miners remain hopeful. According to NFT collector and crypto investor Anvvy.eth, the average Bitcoin production cost had dropped by $11,668 between June and July. However, only the most efficient ASICs would remain profitable, with break-even Bitcoin prices ranging between $39,581 and $54,424.

Conclusion

The drop in Bitcoin mining difficulty is a significant change, but it remains to be seen how it will affect the profitability of Bitcoin miners. Miners will need to be price-sensitive and adjust their operations accordingly to remain profitable.

Source: Crypto Mining News - Bing

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