While the Bitcoin network’s mining was soaring at all-time high levels, recent data brings some relief to the miners.
Recent data from Coinwarz suggest that the difficulty level in Bitcoin mining re-adjusted itself on December 5, around 8:50 p.m. (EST). The difficulty level has dropped at block height 766,080 and has been recorded as the most significant drop or reduction this year. The drop in the difficulty level implies that it is now easier for miners than earlier.
Currently, the Bitcoin difficulty level has dropped by over 7.32%, from an all-time high of 36.95 trillion to 34.24 trillion, as suggested by the graph.
The mechanism of the network difficulty level is such that it targets to adjust periodically or every 2,016 blocks so that the average time required to mine a block stays at its constant rate of around 10 minutes. As per figures, before the current block height, the average block time was around 10:48 minutes, implying a significant difficulty drop was anticipated to take place.
Prior to the recent reduction, the largest difficulty reduction was recorded at block height 745,920 on July 5 this year. During that time, the difficulty level dropped by over 5.01%, and the difficulty was calculated at around 27.69 trillion.
At 9:00 p.m. (EST), the total hashrate associated with the Bitcoin network was recorded at around 271.33 exahash per second (EH/s). Sources reveal that Foundry USA is one of the top bitcoin mining pools, with over 25.48% of the network or over 64.47 EH/s. It has discovered over 107 blocks out of the total 420 discovered in the last three days.
The miners previously were under immense pressure due to the increasing mining difficulty, increasing cost of production, the decreasing hash prices, and the persistent bear phase. Todayq News reported that miners had to dump over 7,700 Bitcoin in one week. All of this forced the miners to dump their reserves to offset their losses.
At the time of writing, Bitcoin is trading at $16,975.60, a 0.06% surge from the past day.