The data on the chain show that the difficulty of Bitcoin is defined to see a decrease in the next adjustment after having increased the four times previous.
Bitcoin's difficulty will finally take a break to minors
The “difficulty” refers to a feature present on the Bitcoin blockchain which defines how much the minors would find it hard to exploit a block. The network changes its difficulty in automatic adjustments which occur approximately every two weeks.
This feature exists on the network to obtain a task: keep the production rate of stable block at around 10 minutes per block. The “block production rate” here is the moment when minors take to exploit a block of the cryptocurrency.
Minors on the BTC network carry out their duty by taking advantage of the computing power. As such, whenever they widen their facilities, they become their task faster. But due to the existence of the difficulty, this increase in speed is only temporary.
Whenever minors deviate from the standard block production rate, the network takes measures in the next adjustment and changes the difficulty just enough to bring the validators to the usual rate. The adjustment can be both positive and negative, depending on whether minors perform their task at a faster or slower pace.
The next Bitcoin difficulty adjustment should occur this Sunday, around 1:30 UTC. Here are the details concerning this event, according to data from Coinwarz::
Looks like the Difficulty is set to go down in this event | Source: CoinWarz
As it is visible above, the average time of the Bitcoin block was 10.50 minutes recently, which means that minors were slower than necessary. To correct this, the network should decrease the difficulty by almost 5%.
During each of the last four adjustments, the chain has increased metric, so this upcoming drop would end the sequence. As mentioned above, the difficulty is only a reaction to what minors do. Thus, these trends in difficulty can be traced to the trend of the hashrate, an indicator that measures the total quantity of calculation power used by minors.
Below is a table of Blockchain.com This shows the 7 -day average data from the Hashrate Bitcoin in the past year.
The value of the metric appears to have plummeted recently | Source: Blockchain.com
According to the graph, it is obvious that the average of 7 days of the Hashrate Bitcoin witnessed strong growth earlier, but its value observed a dive recently.
Whenever the hashrate increases, things become more difficult for individual minors. This is due to the fact that the difficulty increases whenever this time, ensuring that any increase in income due to higher calculation power is canceled.
Thus, the same income is now contributed by a greater calculation power pool. Minors who cannot increase their individual power at the same pace as the network naturally increases late.
As such, it is not uncommon to see the hashrate cool off after a big leap in difficulty. The recent dive into metrics may also have taken place because some minors could not have been able to face the multiple consecutive points in the difficulty.
BTC price
Bitcoin strengthened its recovery during the last day, because its price reached the $ 97,500 mark.
The trend in the BTC price over the last five days | Source: BTCUSDT on TradingView
Dall-E, Blockchain.com, Coinwarz.com image, tradingView.com graphic
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