Bitcoin [BTC]the biggest cryptocurrency struggle continues to see new days and nights in the crypto markets. You may have taken a different approach.
Bitcoin posted its worst performance in August since 2015 after the monthly candlestick fell 14%. In fact, at the time of writing, BTC is trading around $19.9k and has fallen below $20. Here is his 7-day layout of the largest token red painted.
Following the free fall, many analysts presented a bearish trend to warn Bitcoin enthusiasts. For example, Crypto Tony warned that the (Bitcoin) stage is set for bigger losses going forward. In a tweet sent on Sept. 1, the famous trader Added,
this is my macro #bitcoin now and until we see
– Change in market behavior and macro bullishness (take out $30,000 and make higher highs)
— Crypto Tony (@CryptoTony__) September 1, 2022
Needless to say, the drop even saw a massive liquidation in the BTC spot market. This means that traders have started selling their holdings. But not everyone took the same approach.
less traveled road
Surprisingly, miners hadn’t given up on Bitcoin yet. mining difficulty Reached a pretty high price. BTC introduced mining difficulty adjustment at block height 751,968, mining difficulty increased significantly from 9.26% to 30.98T.
According to data from on-chain monitoring resources BTC.comThis will be the highest difficulty adjustment since January this year.
Additionally, this figure represents a 9.26% increase from August 18, when the mining difficulty was 28.35 trillion.
Now, mining difficulty determines how difficult it is for miners to validate transactions, group them into blocks and add them to the blockchain.
If there are few miners, the difficulty will decrease, but if there are more miners, the mining difficulty will increase. A rise therefore means an increase in demand.
what does this mean?
Well, the rise in both difficulty and hashrate reflects a belief among miners in the long-term profitability of participating in the network. It comes when you can’t enjoy it.
According to BitInfoCharts, mining profitability has consistently declined since August 18, at $0.109 per THash/s (based on a 7-day moving average).
At the time of writing, profitability has dropped to just $0.082 per THash/s. Certainly a worrying signal coupled with the BTC price drop. In fact, the price he fell 17% in a month and 60% in a year.
I have a question here. Will miners be able to withstand such losses and continue mining work?