Bitcoin mining difficulty has dropped for the fourth consecutive time, and it is now the easiest time to mine the leading cryptocurrency since January 2020.
Bitcoin Mining Difficulty Hits 18-Months Low
The Bitcoin mining difficulty dropped again over the weekend as the cryptocurrency market continued to be in a bearish trend. The mining difficulty plunged by 4.81% over the weekend, and it has now been revised to 13.67 trillion.
According to the network data, this is the lowest Bitcoin’s mining difficulty has dropped since January 2020. The recent decline represents a 45% dip from its recent high of 25.05 trillion that was sustained through the two weeks between May 13 and 30.
The drop in mining difficulty can be attributed to the recent bans on cryptocurrency mining activities in China. In June, the Sichuan province banned crypto mining activities and cut off the power supply to Bitcoin mining farms and other smaller cryptocurrency miners. The ban caused a 28% decline in Bitcoin mining’s difficulty within the space of a week. This was followed by consecutive losses.
The decline in mining difficulty could be attributed to yet another Chinese province. Authorities in Anhui province banned cryptocurrency mining and other high-energy consuming initiatives. This ban led to a further decline in Bitcoin’s mining difficulty.
Bitcoin Maintains Price Above $30k
The digital currency market has been in a bearish cycle since May when prices of most cryptocurrencies reached their all-time highs. Bitcoin’s price is down by over 40% since the all-time high of $64,000 it achieved earlier this year.
At the moment, BTC is trading just above the $31k mark. The BTC/USD pair has been able to hold on to the $30k resistance over the past few weeks. However, Bitcoin has also struggled to surpass the $40k point.
Despite the recent decline in prices, market experts and investors are confident that Bitcoin and other cryptocurrencies would bounce back in the coming months.