Bitcoin mining difficulty has dropped approximately 29.67% in the past 90 days but added approximately 28.83% in the past 30 days.
Bitcoin mining difficulty has risen 3.87% in the past 24-hours hitting 17.62T at block height 697,657. Notably, the mining difficulty hit its yearly all-time low of around 13.67T in mid-July. The significant drop was largely attributed to the Chinese crackdown on mining firms, in addition to disruption by heavy rainfall in most parts of Asia where most miners were located.
However, as other parts of the world including the North American miners took advantage and increased their mining capabilities, the mining difficulty has adjusted to a higher level. As a result, Bitcoin’s overall ecosystem keeps getting healthier as more miners come into the process.
Notably, Bitcoin mining difficulty has dropped approximately 29.67% in the past 90 days but added approximately 28.83% in the past 30 days according to Coinwarz.
As Bitcoin prices remained relatively high in comparison to the start of the year, miners accumulated more assets during the crash of the mining difficulty. Consequently, most miners who were still operational in the past few weeks have made notable profits according to a statistics survey.
“Bitcoin mining has never been more profitable,” said Dave Perrill, CEO at crypto mining colocation company Compute North. “Look at the percentage of price run that bitcoin had over the last 12 months and look at the hashrate percentage increase, and it’s nowhere near in line.”
Bitcoin Mining Difficulty and the Crypto Market
Notably, the next Bitcoin difficulty adjustment is estimated to take place on September 7, 2021, whereby the difficulty is expected to rise from 17.62 T to 19.87 T. The rise will reciprocate to an increase of approximately 12.78%, according to Coinwarz.
The re-adjustment occurs in order to keep the average block mining time at 10 minutes, thereby keeping the next halving at the forecasted time of May 10, 2024.
The rise in mining difficulty has coincided with the overall crypto recovery from the mid-May pullback. At the time of reporting, Bitcoin was trading around $47 K, with the crypto market capitalization at around $2.08 trillion according to metrics provided by CoinGecko.
Wall Street analysts led by PlanB with his S2F model estimate there will be another bull market before the 2024 halving. Moreover, long-time Bitcoin critic Peter Schiff, and Jordan Belforthave changed their stance and estimate a $100 K per Bitcoin by the end of year.
As more institutional investors venture into the mining sector, the difficulty is expected to rise higher in the coming months.
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