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At the time of writing, Bitcoin is expected to have a difficulty adjustment of -20.8%, with 651 blocks remaining. Listed below are the largest difficulty adjustments in Bitcoin history, making the impending difficulty adjustment the largest downside in history if block mining continues at the same pace.
As mentioned in previous Daily Dives, the hash rate has fallen at a historic rate after the mining ban in China. The Bitcoin network is very resilient to such disruptions due to simple economic incentives, but the hash rate migration has a short/medium term impact on the market.
Mining revenue is down 64.5% from an all-time high of $67,434,000 per day (seven-day moving average) on May 10. The pressure this placed on the miners remaining on the network further drove the bitcoin price down.
Another factor playing a role in the exodus of miners from the East is that many of these companies and operations held nearly all of their reserves and liquid cash balances in bitcoin, and as a result, these entities had to sell to cover the high cost. of transfer operations.