Mining Bitcoin is now easier! According to a Glassnode report based on data from BTC.com, mining difficulty dropped 7.32% which corresponds to the largest adjustment of the year. But why that fall when we know that it becomes more difficult to desire the precious token as it is generated?
This news is all the more surprising since the Bitcoin mining rate had hit all-time highs last month. The reason is currently in the news. Celsius, FTX, Terra, all these events will be it gave the cryptographic world a hell of a blow. But let’s take a closer look at this phenomenon in the course of this article.
Glassnode highlights major stress in the crypto market
Bitcoin showed us a nice rise in the last few days i an increase in value of approximately $17,000. Even if some experts think it will not last, a certain hope was born, supported by the concept of “Rally Santa”.
Chart of Bitcoin value for the last 7 days – Source: CoinMarketCap
But this momentum could is quickly closed by pressure to sell growing on the side of the miners. Because contrary to thought, Bitcoin is not a good news that can be easily mined.
This shows a lack of interest among some miners for Bitcoin (BTC). Since the more cryptocurrency is mined, the tougher the competition, and the higher the computing power required to mine Bitcoin.
In one of his tweets, Glassnode reported a 7.3% drop. Bitcoin mining difficulty. This is the biggest drop since 2021 with China’s strict crypto regulations.
The miners about to capitulate?
In any case, this is the conclusion Glassnode experts draw from this opinion. The sudden drop in mining difficulty indicates extreme stress which pours out on the miners.
The crypto bear market seems to be endless and the closure of major companies is cascading. The price of energy is becoming heavy on the profitability of the miners, large companies like FTX go bankrupt and the values in the market decline. In short, you have to have a strong heart to make a profit as a miner with the current situation.
And unfortunately, few miners survive in this situation more than annoying. Some indicators like the 30-day moving average (30DMA) showed a decline from the 60-day moving average (60DMA).
Tea #Bitcoin protocol just reduced the mining difficulty by -7.3%, the biggest downward adjustment since July 2021.
Due to falling coin prices, rising energy costs, and debt burdens, the mining industry is under severe stress.
Live Panel: https://t.co/64jyX7mRzj pic.twitter.com/USBtvhQtZt
— glassnode (@glassnode) December 6, 2022
Trading platforms have lost a lot of credibility with recent events. From now on, the trend is growing around a physical wallet, much more secure than their counterparts. If you want to go to this solution, check out the Ledger wallet!
Risk of capital loss.
Will Bitcoin go to the floor price of $13,000
You may have heard of it before, but if Bitcoin does not consolidate at the $19,000 support level, this one could well drop to 13,000 dollars. However, this disaster is being prevented by indicators showing us a decline in sales.
One of these measures refers to the fact that too much liquidity has been drained from the market due to the bankruptcy of large over-indebted companies and the disappearance of bad debts. These positive measures highlight the possible maturation of Bitcoin it seems to purify the non-viable elements of its ecosystem.
It is still difficult to predict the expected situation for Bitcoin. Experts like JP Morgan thinks BTC will drop below $13,000 before longand Mike McGlone announced Bitcoin to $100,000 by 2023.
So who to believe? An answer cannot be given at this time because the metrics intersect and oppose each other. We will have to wait a little longer to see in which direction the number 1 crypto in the world is going. for now, investors desperately need guarantees to prevent another Terra or FTX scandal from happening again.
Bad time to invest in Bitcoin?
Investing in Bitcoin with the current situation is completely risky. But that doesn’t mean it’s impossible to make a profit! The crypto market is still very dynamic and many projects are flourishing.
Especially projects across the metaverse and NFTs that bring together large amounts which runs into millions of dollars. Whether it’s Infinity Battle, Tamadoge, Calvaria or others, the game is not over!
For leaders like Bitcoin and Ethereum, the investment strategy must be seen in the long term. The bear market is still in full swing and there is little hope of a comeback in the coming days.
While you wait for the rest, we give you our top of the best ICO presales for the year 2022-2023 here!
