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Bitcoin’s Significant Adjustment: Mining Difficulty Hits 18-Month Low – What’s Next For Miners?

The Bitcoin mining difficulty has experienced a significant decrease, the largest drop observed in the last 18 months. This change is directly tied to fluctuations in the network’s hash rate, which has dipped below 600 EH/s following the recent halving event.

The adjustment, which marks a 5.7% fall in mining difficulty, brings the level down to 83.1 trillion, according to data from Bitbo.

Bitcoin Mining Difficulty History Chart

This most substantial adjustment since December 2022 reflects broader shifts within the Bitcoin mining landscape. At that time, Bitcoin’s price hovered around $17,000, contrasting sharply with current levels.

Notably, the mining difficulty, a metric that determines how challenging it is to find a new block, adjusts approximately every two weeks, or every 2016 blocks. This system ensures that block discovery remains consistent at around every 10 minutes, irrespective of the number of miners.

Impact On Miners And Market Dynamics

The recent decline in mining difficulty came after a 10% drop in the network’s hash rate from a seven-day moving average of 639.58 EH/s to 581.74 EH/s.

Bitcoin network hash rate 7DMA.

This decrease in hash rate led to longer average block times of about 10 minutes and 36 seconds, up from the standard 10 minutes, before the difficulty adjusted downward at block height 842,688.

The reduced hash rate also contributed to a new low in the hash price, which fell to roughly $0.049 per TH/s per day.

Bitcoin Hashprice Index. |

This decline impacts miners’ profitability, as the hash price, a term introduced by Bitcoin mining firm Luxor, represents the earnings a miner can expect per unit of hashing power per day.

However, today’s negative difficulty adjustment may provide some relief for miners, making it easier to mine blocks than in the previous two weeks.

Bitcoin Market Reactions And Investment Trends

The adjustments in mining difficulty and hash rate come when Bitcoin’s price also shows signs of volatility. After reaching a peak above $73,000 in March, the price has fallen by 16% and is now trading around $61,376.

Bitcoin (BTC) price chart on TradingView

This decline mirrors the broader trend in the mining difficulty, suggesting a possible correlation between these metrics.

Furthermore, the market has observed subdued activity in the spot Bitcoin exchange-traded funds (ETFs). Data from Soso Value indicates minimal net inflows or outflows, with Bitwise Bitcoin ETF being the only issuer that experienced inflows yesterday.

This trend could signify a cooling interest in Bitcoin investments or a shift in investor strategy following the recent price and mining adjustments.

Feature image from Unsplash, Chart from TradingView

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Bitcoin Sees Massive Sell-Off From Miners, As Price Holds Steady

Amid the excitement encompassing the approval of Bitcoin Spot Exchange-Traded Funds (ETFs), BTC miners have been spotted carrying out an aggressive selling spree leaving the community to ponder on the impact of the sell-off.

Bitcoin Miners Engage In Selling Spree

Well-known cryptocurrency analyst Ali Martinez shared this information with the community on the social media network X (formerly Twitter), noting a “substantial increase in selling activity” from Bitcoin miners lately.

According to data shared by Ali, miners have sold about 10,600 Bitcoin in less than 24 hours. This was valued at an estimated $455.8 million as of the time of the report.

Bitcoin

The recent increase in sales by the Bitcoin miners indicates a responsive market. In addition, the sizable amount involved signifies an impactful development in the cryptocurrency landscape.

Several reasons could be traced back to the massive selling spree by these miners. One potential reason could be attributed to the decline in the Bitcoin hash rate, which generally affects the profitability of miners.

BTC miners must make several guesses at a challenging mathematical problem in order to process transactions. A greater hash rate indicates that the miners are carrying out more guesses, suggesting more effort to secure the network. 

The crypto asset’s hash rate saw a notable decrease of 25% during the last weekend. This raises speculations regarding the security of BTC’s network ahead of the much-awaited “Halving.”

It was reported that the total real-time rate from all mining pools decreased from 570 exahashes per second (EH/s) to as low as 425 EH/s. However, the hash rate is currently sitting at 550 exahashes per second (EH/s).

The reduction occurred due to the restrictions placed on businesses’ use of electricity by ERCOT (Electric Reliability Council of Texas) because of unfavorable cold weather.

Interest In BTC Mining From Institutions

Top financial companies have been demonstrating interest in Bitcoin mining companies for a while now. Various financial institutions have made significant investments, which have also helped the mining industries. 

Even those who have historically opposed Bitcoin or have been hostile to it have invested millions of dollars in the industry throughout 2023.

Since August 2023, Blackrock has been a significant stakeholder in four of the five biggest mining companies. The asset manager increased its level of involvement with these firms only during the second half of last year.

As of the time of writing, Bitcoin was trading at $42,710, indicating an over 7% decrease in the past seven days. Its market cap is up slightly by 0.02% in the past 24 hours, while its trading volume is down by 17.17%.

Bitcoin

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Bitcoin Bull Market 2025: 3 Reasons Why It Won’t Be Like 2017 And 2021

In a recent tweet, Luke Mikic, a renowned podcaster and YouTuber, highlighted the distinct differences between the upcoming 2025 Bitcoin bull market and its predecessors in 2017 and 2021. Drawing from his insights and the data available, here’s a deep dive into the three reasons that set the 2025 bull market apart:

1. The Hash Rate Race: Nation States Enter the Fray

“The Bitcoin hash rate is going absolutely parabolic, smashing through 400TH/s & another ATH!” Mikic exclaimed. Indeed, the Bitcoin network hash rate recently achieved a record-breaking 414 EH/s, marking an 80% surge over the last 12 months. This growth is particularly astonishing given the energy challenges in Texas and the escalating global electricity costs.

Mikic points out, “This is the 1st bear market where the hash rate is hitting new ATHs… Is this time different?” The answer seems to be a resounding yes. Nation states are now publicly (and maybe privately) mining Bitcoin.

El Salvador and Bhutan were the pioneers, and recently, Oman joined the league. Oman’s strategic move to mine Bitcoin aims to diversify its economy from oil dependence and bolster renewable energy initiatives, including flare gas mitigation. Remarkably, it is yet unknown if not more countries are already mining BTC in stealth mode without official announcement.

2. Supply Suffocation

Historically, bear markets have seen an influx of Bitcoin on exchanges. However, the current scenario paints a different picture. Mikic notes, “In every prior Bitcoin bear market we’ve seen an increase in the number of coins on exchanges. 2015 – Increase of 800K coins, 2018- Increase of 900K coins, 2022- DECREASE of 1 million since March 2020.”

According to data from Santiment, a mere 5.8% of Bitcoin is now on exchanges, the lowest since December 17, 2017. Furthermore, Bitcoin’s Exchange Depositing Transactions (SMA 7-day) plummeted to a 5-year low, reaching 30,798 BTC per day, a figure reminiscent of December 11, 2016. On-chain analyst Axel Adler Jr.’s takeaway? “People do not want to sell BTC. The supply deficit will continue to stimulate growth.”

3. The Great Wall Street Accumulation

The BlackRock Bitcoin spot ETF application stands as a watershed moment in Bitcoin’s journey towards mainstream adoption. Mikic emphasizes, “The Blackrock Bitcoin ETF application will be remembered as a pivotal moment for Bitcoin’s future mainstream adoption. TRILLIONS of capital has now been given the green light to invest in Bitcoin.”

As the world’s largest asset manager, BlackRock’s entry could bestow unparalleled legitimacy upon the Bitcoin market. BlackRock will probably advertise Bitcoin and its new product in a big way, bringing new retail and institutional investors into BTC.

Looking at the current price stagnation in Bitcoin, it should be noted that there are no new inflows at the moment, as evidenced by the decreasing amount of stablecoins in the ecosystem. In the midst of the longest of all bear markets, there is simply no reason for retailers to get back in at the moment. However, an event like the approval of a Bitcoin spot ETF can change this abruptly and be the trigger for a Bitcoin bull run (even before halving).

In conclusion, the 2025 Bitcoin bull market is poised to be unlike any other. With nation states joining the mining race, a palpable supply shock, and Wall Street giants like BlackRock showing interest, Mikic’s final words resonate strongly: “Takeaway: NOBODY is bullish enough.”

At press time, BTC traded at $26,058.

Bitcoin price

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Bitcoin Hash Rate Registers New Highs, A Selloff Imminent?

Based on CryptoQuant data, one observer notes that whenever the Bitcoin hash rate records new highs, as is the case in late January 2023, coin prices tend to retrace as the upside momentum fades. 

Extending this preview on current BTC rates, the analyst predicts that prices may rise above the current resistance level at $23,800 to $25,500 before dumping below immediate support lines towards $20,000, or worse. 

 

Bitcoin Price on January 27

Hash Rate Peaks Are Selling Signals?

Per his analysis, expanding Bitcoin prices would encourage more users and mining farms to power on their rigs, further pushing up the hash rate. Based on his theory, the rising hash rate would be a precursor of strong liquidations that may unwind mining activity, pulling down prices.

On January 26, the Bitcoin hash rate increased to 305 EH/s, an all-time high. Hash rate is the total computing power connected to the Bitcoin network. At the current pace, a new level will likely be registered if BTC prices continue pumping. 

While there appears to be a direct correlation between the spot BTC price and hash rate, the observer, citing on-chain data, thinks the opposite is true. He is convinced that peaking bitcoin hash rates can diverge with prices, impacting coin valuation.

BTC just hit new ATH, and many might make you believe this is a bullish sign, but I will show you that it always had quite the opposite effect. I’ve been using hash rate all-time highs as bearish signals throughout 2022 with very good results. You can see all new ATHs. Even if you go back to 2021 ATHs on a live chart, you will see that all signaled an imminent selloff.

Notably, the analyst pointed out occasions in 2021 and 2022 when rising hash rates led to significant price retracements after solid rallies. In seven events, the average selloff was a 19.5% drop in prices, with the deepest being 37%. Preceding this correction, he adds, the coin’s valuation tends to post an 11% maximum gain. From current Bitcoin prices, this places the coin above $25,000.

Bitcoin Mining Clusters Are Forming

Before prices expand, “clusters of intense Bitcoin mining activity,” tend to form, as is presently the case. Because of miner involvement, the hash rate moves up in tandem in quick succession, registering an all-time high. However, the sharp activity in mining and expansion of the hash rate led to strong selloffs, on average, within nine trading days. 

Per the current Bitcoin formation, the expansion in BTC prices above $25,000 may precede a cool-off, possibly forcing the coin back to $20,000 or, worse, $14,500 from early February 2023.

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Bitcoin Hash Rate at Near All-Time High despite Rising Mining Difficulty

The Bitcoin hash rate is trending at near all-time highs, per on-chain data on January 20, 2023.

Bitcoin Hash Rate at 274 EH/s

According to streams from BitInfoCharts, the Bitcoin network currently has a hash rate of 274 EH/s, up by almost one percent in the past 24 hours. Even at this pace, the hash rate is down from January 16 highs of 302 EH/s.

Bitcoin Hash Rate

Hash rate is the measure of computing power dedicated to BTC mining. As a proof-of-work platform, the Bitcoin network depends on a community of node operators using Application Specific Integrated Circuit (ASIC) gear for block confirmation and security.

ASICs are special nodes explicitly designed to mine cryptocurrencies in proof-of-work networks using, among others, the SHA-256 consensus algorithm. ASICs that can mine BTC can also be used to mine its forks, adhering to a proof-of-work system, including Bitcoin Cash. For confirming a block, a miner is rewarded with BTC.

The amount of computing power channeled to the Bitcoin network often fluctuates depending on many factors, including the cost of scarce gear, often from Bitmain, and the price of BTC.

In recent years, chipset manufacturers, led by Bitmain, have been tuning their equipment, making them more efficient in power consumption. At the same time, they are packing them with more power.

Accordingly, the latest BTC ASICs can dispense more computing power. As an illustration, the Bitmain Antminer S19 XP released in July 2022 can produce 140 TH/s while using 3010W. Meanwhile, the older versions, like Bitmain Antminer S17+, can generate 76.00 TH/s while using more power at 3040W. 

Improving efficiency coupled with rising prices may explain the rising hash rate. Since miners are likely to power their gear as Bitcoin prices recover, the hash rate might bounce, even to new all-time highs, in the months ahead.

This will be especially true if BTC prices continue to maintain the current trajectory. After months of lower lows in 2022, Bitcoin appeared to have bottomed up in November 2022 at $15,300. Prices are now trending above $20,000, according to TradingView charts.

BTCUSD Coinbase

Mining Difficulty Adjusted Upwards

Hash rate trends and difficulty readings are proportional. In response to the rising hash rate, near all-time highs, the network automatically increased mining difficulty by double digits to 10.26% on January 16. The difficulty was adjusted upwards by 13.55% on October 10, 2022. 

Bitcoin mining difficulty

Mining difficulty in Bitcoin changes depending on the hash rate. With more computing power, miners can extract more coins within the allocated 10-minute block-producing time. Bitcoin ensures that this never happens by increasing difficulty, making confirming a block more tasking and consuming more resources.

In this way, the 10-minute block-producing time is retained, and the network continues to function as designed, regardless of the investment made by miners. 

In their observation, Binance, which also operates a mining pool, said if BTC prices rise above $23,000, miners using efficient miners would still turn in a profit despite the upward difficulty adjustment.

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Fidelity Says What We’ve Been Thinking: Countries & Central Banks Will Buy BTC

Surprising the world, Fidelity predicts what Bitcoin’s game theory implies. It’s as Satoshi Nakamoto said, “It might make sense just to get some in case it catches on.” That’s the exact same conclusion that Fidelity reaches in its “Research Round-Up: 2021 Trends And Their Potential Future Impact” report. Take into account that Fidelity is a multinational financial services corporation, it doesn’t get more mainstream than this.

I agree with @Fidelity, of course, but still astonishing to read this on Bitcoin adoption game theory in such a mainstream financial report: pic.twitter.com/7zRO9rEele

— Alex Gladstein 🌋 ⚡ (@gladstein) January 13, 2022

What did Fidelity say about Bitcoin adoption at the nation-states and central bank level? 

They put it very clearly:

“We also think there is very high stakes game theory at play here, whereby if bitcoin adoption increases, the countries that secure some bitcoin today will be better off competitively than their peers. Therefore, even if other countries do not believe in the investment thesis or adoption of bitcoin, they will be forced to acquire some as a form of insurance. In other words, a small cost can be paid today as a hedge compared to a potentially much larger cost years in the future.” 

In other words, It might make sense just to get some in case it catches on. And, as Stacy Herbert said, “First mover advantage goes to El Salvador”. At least if we’re talking out in the open, because other countries might be accumulating Bitcoin on the down-low. For example, Venezuela seized a lot of ASICs from private miners. Chances are those are active in a warehouse somewhere. And, of course, there are rumors that the USA is already mining.

Fidelity is one of the biggest asset managers in the world

They see what ID-10ts fail to understand

First mover advantage goes to 🇸🇻

Game over for fiat, game on for #bitcoin

🌋🇸🇻 pic.twitter.com/I0Jlp8baVY

— Stacy Herbert 🇸🇻 (@stacyherbert) January 13, 2022

In any case, what does Fidelity conclude?

“We therefore wouldn’t be surprised to see other sovereign nation states acquire bitcoin in 2022 and perhaps even see a central bank make an acquisition.”

If those players do it in the open, it will probably trigger a race like no other. A race in which it will be too risky not to participate. 

Speaking About Bitcoin Mining…

Fidelity’s report summarized 2021, it goes through most of the major stories that NewsBTC has covered ad nauseam. The company doesn’t try to figure out why did China ban Bitcoin mining, but it highlights how fast the hashrate recovered. 

“The recovery in hash rate this year was truly astounding and one that we think demonstrates several issues that will be important to keep in mind for 2022 and beyond.”

The Fidelity report also highlighted how well the network responded. “This has now been tested and bitcoin’s network performed perfectly.”

BTC price chart for 01/17/2022 on Eightcap | Source: BTC/USD on TradingView.com
What Does Fidelity Say About The Ecosystem In General?

The report wasn’t exclusively about Bitcoin, they also identified the biggest trends in the wide crypto sphere.

“The biggest non-Bitcoin themes put on display this past year included the massive issuance of stablecoins, the maturation of decentralized finance, and the early days of non-fungible tokens.”

And about those trends, Fidelity predicted:

  • “The growth in interconnectivity between siloed blockchains”

  • “Traditional fintech companies partnering or building capabilities to interact with DeFi protocols”

  • “The dawn of decentralized algorithmic stablecoins has officially begun.” Responding to the “growth in demand for more regulated, centralized stablecoins.”

  • “While the long-term value of these NFTs is not known, the impact of increased digital property rights for art, music, and content is likely to be meaningful in some form.”

In general, Fidelity thinks that investment in digital assets will keep growing:

“Allocating to digital assets has become far more normalized over the past two years for all investors. The Fidelity Digital Assets 2021 Institutional Investor Survey found that 71% of U.S. and European institutional investors surveyed intend to allocate to digital assets in the future. This number has grown across each individual region of the survey for the past three years, and we expect 2022 to show another year of higher current and future asset allocations to digital assets amongst institutions.” 

However, something has to happen to catalyze widespread institutional adoption. “The key to allowing traditional allocators to continue to pour capital into the digital asset ecosystem revolves around regulatory clarity and accessibility.”

Is 2022 the year of regulatory clarity? What will happen first, institutional adoption of cryptocurrencies or nation-states adoption of Bitcoin? What central bank will earn first-mover advantage? Burning questions for the year ahead.

Featured Image by Damir Spanic on Unsplash | Charts by TradingView

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Bitcoin Mining In The U.S.: 4 States Attract The Most Miners

Dataset from Foundry shows that four states in the U.S. have the highest Bitcoin hash rate distribution. The dataset shows that many Bitcoin miners are headed to New York, Kentucky, Georgia, and Texas.

Foundry U.S. is the largest mining pool in North America and the fifth-largest globally. The hash rate is a measure of collective mining power. A mining pool enables miners to combine their hashing power with other miners all over the world.

Bitcoin Mining In The U.S.

According to the data, within the U.S., New York accounts for 19.9% of bitcoin’s hash rate, 18.7% in Kentucky, 17.3% is in Georgia, and 14% in Texas.

Source: Foundry U.S.

At the Texas Blockchain Summit in Austin on October 8, 2021, Nic Carter, co-founder of Castle Island Ventures, presented Foundry’s data. “This is the first time we’ve actually had state-level insight on where miners are unless you wanted to go cobble through all the public filings and try to figure it out that way,”

He added that “This is a much more efficient way of figuring out where mining occurs in America.”

However, Carter pointed out that the Foundry dataset does not consider all the U.S. mining hash rates as not all U.S.-based mining farms use its services. One of the largest publicly traded mining companies in America,
Riot Blockchain, with a huge presence in Texas, does not use Foundry. Therefore, the dataset does not account for its hash rate. Texas’ mining presence is understated and could possibly be higher than the 14% quoted.

BTC trading at over $55K | Source: BTCUSD on TradingView.com

Many of the states with the highest Bitcoin hash rates also have high proportions of renewable energy. This fact may have started changing the narrative that bitcoin is bad for the environment.

Related Reading | $425bn Wiped Off Crypto Market As Musk Says Bitcoin Is Bad For The Environment

According to CNBC, a lot of the miners are moving to these states because they have cheap and renewable sources of power. Data from the U.S. Energy Information Administration (EIA) shows that a third of New York’s in-state generation comes from renewables sources. Kentucky, which has the second-highest hash rate, is also known for its hydroelectric and wind power. The state’s government recently passed a law that grants certain tax exemptions to crypto mining operations.

Carter also said that the migration of miners to the U.S. is positive because it means much lower carbon intensity.

Texas Leads Bitcoin Mining

Although Texas ranks fourth according to the data, experts believe it is the top mining destination in the U.S. The state houses mining giants like Riot Blockchain, and the Chinese mining service platform Bitdeer.

A report from earlier this year shows that large orders for mining ASICs are also being delivered to Texas.

Related Reading | Bitcoin Mining Moves to Texas, Bitmain Announces Partner for Massive New Facility

Crypto-friendly lawmakers, a deregulated power grid with real-time spot pricing, and access to significant renewable energy, as well as stranded or flared natural gas, are what make Texas attractive to miners, according to CNBC.

Featured image by Finance Magnates, Chart from TradingView.com

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Powerbridge Technologies Set To Launch Bitcoin And Ethereum Mining In Hong Kong

Powercrypto Holdings, a subsidiary of the blockchain software provider Powerbridge Technologies, is launching cryptocurrency mining, specifically Bitcoin (BTC)and Ethereum (ETH), in Hong Kong. These cryptocurrency operations will utilize environmental-friendly, green, and sustainable energy. This announcement was made in a press release on Friday, October 8, 2021

Powerbridge Technologies is a growth-driven technology company primarily engaged in SaaS solutions and Blockchain applications.

Launching Crypto Mining In Hong Kong

Powerbridge Technologies plans to deploy a total of 2,600 high-performance mining rigs in Hong Kong, including 600 BTC mining machines working at a hash rate of approximately 60 PH/s. It also includes 2,000 ETH mining machines, with a hash rate power of approximately 1,000 GH/s.

According to the announcement, Powercrypto aims to increase the BTC and ETH hash rate levels across the North American and Asian markets.

Related Reading | Since China’s Mining Ban, Bitcoin Hashrate Has Recovered by 68% And Counting

Sean Wang, Powercrypto’s General Manager and Chief Technology Officer, stated that: “Powercrypto is a major strategic move by the Company to highlight our global presence in the crypto-mining business. We will focus on enhancing our overall hash rate level in BTC and ETH mining by setting up mining fleets in North America and Asia.”

In its global BTC and ETH mining, the company plans to focus on maximizing the use of carbon-free clean energy power. Powerbridge Technologies President Stewart Lor, also commented, “We are very excited about our launch and positioning as a global presence in the cryptocurrency mining business. We expect our high-performance environmental-friendly crypto-mining fleets to significantly accelerate our revenue.”

Related Reading | Value Of Ethereum Held By Miners Reaches Five-Year Record Levels

Powerbridge Technologies states that it plans to increase its bitcoin miners with an expected capacity of 10,000 miners and an expected hash rate of 728 PH/S. Additionally, according to the company, its proprietary AI/GPU operating system can support up to 100,000 ETH miners in operation.

Powercrypto Holdings: A Subsidiary Of Powerbridge Technologies

Powerbridge Technologies established Powercrypto Holdings, its new Singapore-based subsidiary for its Crypto Mining and Digital Asset operations, late last month.

Powercrypto focuses on green renewable energy-powered crypto mining farms with its intended worldwide operations. The announcement states that the subsidiary strives to become one of the most competitive Bitcoin and Ethereum mining companies. The President of Powerbridge Technologies believes that Powerbridge is well-positioned to accelerate the growth of its crypto businesses and generate promising revenue from it.

BTC trading at $54.9K | Source: BTCUSD on TradingView.com

A few days ago, the company announced the appointment of Sean X. Wang as General Manager and Chief Technology Officer of Powercrypto Holdings. Mr. Wang, a blockchain expert, was brought on to lead the operations and technology development of Powercrypto’s crypto mining business. He reportedly has wide-ranging expertise in the fields of crypto mining and digital assets operations, having managed and operated mining fleets with nearly forty thousand Bitcoin and Ethereum mining rigs.

Digital Currencies In Hong Kong

Hong Kong has played a crucial role in the history of cryptocurrencies. It is the birthplace of some of the world’s largest crypto companies. Tether, the world’s largest stablecoin, was also launched here.

Hong Kong is a metropolitan area and special administrative region of China. Therefore, unfavorable regulations have affected the digital assets space in the region. However, it has been making efforts to develop its Central Bank Digital Currency (CBDC), e-HKD since 2017.

Featured image by CoinGeek, Chart from TradingView.com