Bitcoin
Bitcoin Network Challenges: Are Miners Behind BTC’s Decline?
- Bitcoin difficulty is expected to decrease in the coming days.
- The price of BTC fell along with the currency’s velocity.
Bitcoin [BTC] has been struggling to break above the $65,000 level for some time now. One of the main determinants of the price of BTC would be the state of miners on the Bitcoin network.
Difficulty decreases
A drop of more than 6% in Bitcoin mining difficulty is expected for BTC in the next 24 hours. This would be the biggest difficulty reduction since the FTX collapse in December 2022, which saw a drop of over 7%.
To date, blockages have arrived in an average time of 10.7 minutes. The recent drop in difficulty is likely due to a decrease in the network’s hash rate, which is the total computing power dedicated to Bitcoin mining.
Source: X
Revenue generated by miners also decreased significantly last month, from $72,000 to $59,000.
This decline in revenue could have a severe impact not only on the Bitcoin network but also on the price of BTC.
As miners’ revenues decline, it becomes more difficult for miners to remain profitable, so miners have to resort to selling their BTC so they can stay afloat. As a result, selling pressure on BTC increases.
Source: Blockchain.com
State of the Bitcoin network
Another thing that could impact mining company revenue and the price of BTC would be activity on the Bitcoin network. At the time of writing, daily active addresses on the Bitcoin network have significantly decreased.
This slowdown in activity could signal a potential decline in interest in the Bitcoin ecosystem, which could impact sentiment around the network in the long term.
Source: Santíment
At press time, BTC was trading at $61,655.60. Furthermore, BTC trading speed has dropped significantly in recent days.
A falling speed implied that the frequency with which BTC was being traded had decreased.
Source: Santíment
To read Bitcoins [BTC] Price prediction 2024-25
Traders were optimistic
Despite these factors, traders remained hopeful about the future of BTC.
AMBCrypto’s examination of Coinglass data revealed that the percentage of long positions taken in favor of BTC grew from 48% to 52% in recent days.
Source: Coinglass