Texas Heatwave Causes Drop In Bitcoin Mining Difficulty

According to the BTC.com data, the mining difficulty of Bitcoin has dropped by 5.01%, which marked the biggest decline of the year so far.

Bitcoin has recorded three negative difficulty adjustments in a row. The last mining difficulty was recorded when China's ban forced local miners to migrate elsewhere a year ago. Over a single adjustment period in July 2021, Bitcoin's difficulty collapsed by a staggering 27.94%, which remains the biggest drop to date.

Although, the Bitcoin network was able to recover in a relatively short time, with the U.S. dethroning China as the world's top location for Bitcoin miners.

The recent drop in mining difficulty is likely linked to the heatwave that recently hit Texas, one of the biggest mining hubs in the U.S.  The Lone Star State's miners were forced to suspend their operations to avoid rolling blackouts.

According to Bitcoin metric which updates every two weeks, indicated how complicated it is for miners to produce new coins. With the help of regulator difficulty adjustments that reflect market demand, it is possible to avoid oversupply or undersupply of the cryptocurrency.

On July 20, the Bitcoin hashrate recorded  189.8 EH/s, which is the lowest level since late February.

 Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.