Bitcoin Network Sees Second Largest Difficulty Reduction of 2024

On July 4, 2024, the Bitcoin network experienced its second-largest difficulty reduction since the year’s start. The mining difficulty decreased by 5%, falling from 83.67 trillion to 79.5 trillion.

Second Major Difficulty Reduction of the Year Hits Bitcoin Network

Bitcoin’s mining difficulty dropped by 5% this week at block height 850,752 on July 4. This reduction, the second-largest this year, follows a 5.62% drop that occurred on May 9 at block height 842,688. Both significant decreases came after the fourth halving event at block height 840,000. Despite hashprice levels hitting unprecedented lows, the hashrate remains at 582.33 exahash per second (EH/s).

Additionally, the average block interval has been approximately ten minutes and four seconds. The low price of bitcoin, directly affecting hashprice levels, has put substantial pressure on miners. The past two months have seen mining revenue fall significantly compared to the two months preceding the downturn. This has resulted in three consecutive difficulty reductions, although the first two were minor, at 0.79% and 0.05%. The next difficulty retarget is anticipated on July 19, with another reduction likely in the cards.

The recent consecutive decreases in Bitcoin’s mining difficulty underscore the ongoing challenges miners face due to low hashprice levels and declining revenue. As the network adjusts, the upcoming retarget on July 19 may continue this pattern. This period highlights the dynamic nature of Bitcoin’s ecosystem, where external pressures can significantly impact operational realities, including adjustments that benefit miners.

What do you think about the latest difficulty reduction benefiting bitcoin miners? Share your thoughts and opinions about this subject in the comments section below.