According to the data, the mining difficulty coefficient of Bitcoin has just experienced a significant decline after the domestic restriction.

Bitcoin mining difficulty coefficient suffers the largest downward adjustment since July 2021

According to the data information of enterprise Glassnode analyzed on the chain, the BTC difficulty coefficient has decreased by 7.3% in the latest adjustment of blockchain technology.

To clear the definition of mining challenges, you must first master the "hash rate". The hash rate is a measure of the total output of the computing level transmitted to the Bitcoin Internet at this stage.

Every time this indicator value rises, it means that miners are currently transferring more miners to blockchain technology. On the other hand, the decline means that they are now putting some drilling rigs offline.

When the hash rate fluctuates like this, the ability of miners to solve online transactions will be such. The ascension means that the miner can scatter the blocks more effectively due to the additional energy, while the descent is just the opposite.

However, a feature of Bitcoin blockchain technology is that it attempts to maintain the speed of miners' hash blocks almost unchanged. Obviously, the change of hash rate makes the speed deviate from the Internet specification.

Therefore, in order to offset such ups and downs, the Internet has modified the so-called "mining difficulty". This indicator defines how hard chain verifiers mine Bitcoin.

The following is a data chart showing the transformation of BTC difficulty coefficient over the years:

As you have always seen in the figure, the Bitcoin mining difficulty coefficient has recently reached the highest value in history.

This is mainly because the hash rate is still fluctuating at the ATH level, so the Internet has to increase the difficulty coefficient to reduce the speed of miners to the required speed.

However, because of the bearish market of Hashi stock market, the miners have long been dying, so the extra hardship means that mining BTC for some of them will no longer make money.

Subsequently, the miners gradually disconnected from the Internet in groups, reducing the hash rate. It happened that the recent sharp decline of this index value also caused the mining difficulty coefficient to drop by 7.3%.

This new adjustment of the difficulty coefficient of substantial decline is the highest adjustment on the Bitcoin chain since July 2021. At that time, the hash rate plummeted because China banned mining.

BTC price

At the time of writing, the price of Bitcoin fluctuated around $169000, up 3% last week. In the past month, the value of data cryptocurrency has lost 20%.

Bitcoin Mining Difficulty Observes Sharpest Drop Since China Ban