The Bitcoin network has reduced mining difficulty by 9.13%. The recalculation happened automatically after some of the computing power left the network.
Mining difficulty is a parameter that determines how hard it is for equipment to find the next block. The network recalculates it on its own so that blocks come out roughly once every 10 minutes.
At the current price, mining has stopped being profitable, and some miners have turned off their equipment. For a trader, this is a gauge of what is happening with the cost of production.
How big a step is this?
- 9.13% - that is how much the network lowered difficulty in a single recalculation.
- Almost a tenth - for the network this is noticeable; usually the recalculation step is much smaller.
- Once every 10 minutes - the rhythm of block production that the network maintains with this setting.
The rule is simple. Fewer machines running - difficulty falls; more connecting - it rises.
Why did miners turn off their equipment?
- Price. The drop in the BTC price cut revenue per terahash. A terahash is a unit of mining equipment power.
- Electricity. For some of the equipment, revenue stopped covering the energy bill, and it was switched off.
The reason for the decline is precisely the price. The network has no other grounds for such a step.
What does this mean for a trader?
The cost of production has shifted. When difficulty falls in steps like this, the revenue per unit of power for the miners remaining in the network, on the contrary, rises.
The main point: this relieves some of the pressure on those who sell mined coins to cover bills.
What to watch next?
This is also a marker of nervousness. Miners are the most inert part of the crypto market; they do not react to every candle.
- Equipment switched off - a sign that the price has entered a zone where the economics of mining break down for a whole group of participants.
- Crypto conditions - round-the-clock trading and holding through the weekend are not available everywhere; you can check in the catalog of prop firms.
- Your own mode - choosing a challenge for crypto is worth doing in advance, not during a sharp move.
Do you trade BTC in weeks like these?
When equipment is switched off from the network, BTC moves become sharp and arrive at night without warning. And here not only your levels matter. With some prop firms, crypto trades around the clock and through the weekend; with others, the position must be closed by Friday, and the daily drawdown is calculated from the account maximum. These points decide whether the trade survives to the reversal. The filter by market and style shows them before you pay for the challenge.