Difficulty Drop
Bitcoin’s mining difficulty has dropped slightly, indicating that miners may be pausing their expansion plans. The difficulty adjustment ensures that blocks are found at a consistent rate, preventing inflation.
Hashrate Plateau
Despite the difficulty drop, the hashrate (mining power) has remained stable. This suggests that miners are not actively increasing their computing resources.
Halving Impact
Next month, Bitcoin will undergo a halving, which will reduce block rewards by half. This could make mining less profitable, prompting some miners to hold off on expanding.
Price Factor
The slowdown in hashrate growth may also be influenced by the recent slowdown in Bitcoin’s price. As block rewards are paid in Bitcoin, a higher price makes mining more attractive.
Current Market
Bitcoin is currently trading around $70,800, showing a slight increase over the past week. A potential price uptrend could encourage miners to invest in new hashrate.
