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Bitcoin mining difficulty fell 5.3% on Sunday night UTC following a recent hash rate drop. On-chain data shows the difficulty in mining the network has fallen to $ 19.8 trillion, a level not seen since early January.
The mining difficulty lies in the way the network aims to keep block production at a steady rate, despite an extremely fluctuating hash rate. Every two weeks this makes the mining process easier or harder, in order to accommodate the varying hash rate.
After the previous difficulty adjustment on May 30, the network hash rate remained stable. But on June 9, miners in Xinjiang’s Zhundong Economic and Technological Development Zone were ordered to shut down their operations following the Chinese State Council’s high-level comment on the crackdown on the bitcoin trade and mining activities. Following this news, major Chinese bitcoin mining pools experienced a noticeable drop in hash rate of over 20% on average.
From the last adjustment to June 9, Bitcoin’s average block production interval was around 9.9 minutes, close to the expected 10-minute interval per block, according to the data. But due to the drop in hash rate, the average block production interval between June 9 and 14 has been extended to over 12 minutes.
The drop in difficulty may be good news for miners who are still online, as their share of total block grants over the next two weeks will increase. Meanwhile, the price of bitcoin has once again surpassed $ 39,000, approaching the $ 40,000 level.
Bitcoin price explodes
The price of Bitcoin began to see a noticeable breakthrough also around Sunday evening UTC, after the tweet from Tesla founder and CEO Elon Musk denying he had manipulated the movements of the cryptocurrency market.
“This is incorrect,” he replied to CoinTelegraph’s tweet about an article containing comments accusing him of market manipulation.
Tesla only sold around 10% of the holdings to confirm that BTC could be liquidated easily without moving the market. When there is confirmation of reasonable use (around 50%) of clean energy by miners with a positive future trend, Tesla will resume allowing Bitcoin transactions, ”Musk said on social media.
Bitcoin’s price rose by more than $ 1,500 within hours of Musk’s response, which came just a month after Musk said Tesla suspended the Bitcoin payment option for environmental reasons.
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