Bitcoin miners saw another mining difficulty adjustment on Tuesday, with an increase of 0.95%, according to data from BTC.com.
- The mining difficulty level is now at 20.08 trillion at block height 705,600, reflecting the most difficult level since a previous adjustment on May 30, the data show.
- The latest adjustment follows six increases after four consecutive declines since May when China intensified its clampdown on the crypto mining sector.
- Such mining difficulty adjustments are highly correlated to the changes in the mining hashrate, which refers to the level of computing power required to mine. The more difficult to mine Bitcoin, the less profitable for miners. When the hashrate increases, the mining difficulty typically follows. That said, the expected mining difficulty increase could be largely due to a recovering hashrate.
- The total Bitcoin hashrate has been steadily recovering since July 3, as suggested by data from Blockchain.com. The total hashrate had been nose-diving from mid-May, plunging from 180.67 million terahashes per second — an all-time high — to 84.79 million on July 3, the lowest since September 2019, according to the data. On Tuesday, the hashrate reading was at 144.4 million TH/s.
- China has been clamping down on the crypto mining industry since earlier this year. Notably, on Sept. 24, the National Development and Reform Commission — the country’s top economic planner — jointly issued a notice with 10 other authorities to implement a stepped-up crackdown on crypto mining. In the joint notice, the authorities clearly stated they intend to categorize crypto mining as an outdated industry, in a move to prohibit investments in the sector.
- Many miners have fled China for other places that appear to be more regulation-friendly and offer inexpensive power. Some of the top destinations for displaced Chinese miners have included North America, Kazakhstan and Northern Europe.