- Despite seeing a difficulty drop following the Bitcoin halving, the next difficulty adjustment is positioned to be the largest since January 2018.
- The difficulty is projected to increase by approximately 15%.
The highly-anticipated Bitcoin halving event reduced the Bitcoin block reward from 12.5 Bitcoin to 6.25 Bitcoin. This substantial emission decrease drastically reduced miner revenue, fueling fears of miner capitulation.
Despite miners initially leaving the network in droves, it seems that they are returning quickly as hash rate has begun to recover to levels near pre-halving. The influx of miners is setting Bitcoin up for the largest difficulty adjustment since January of 2018.
Mining Difficulty to Rise
According to CoinMetrics, an on-chain analytics firm, the Bitcoin network is projected to see an upward difficulty adjustment of ~15% during the next adjustment in approximately ~1 day.
Despite fears of miner capitulation following the halving, Bitcoin hash rate is recovering at a rapid pace, nearing the record-high levels prior to the halving. In other words, it seems miners are returning to the Bitcoin network, despite the declining revenue.
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