Bitcoin Mining Difficulty Sees Another Drop, Down 0.2% Following Adjustment
According to the data released by BTC.com on Monday, the bi-weekly adjustment shows how the Bitcoin mining difficulty dropped 0.2%. However, the last adjustment, which occurred on October 24, indicates that the difficulty level has reached a new high.
Bitcoin’s weekly average hashrate stood at 266.3 exahashes per second on Sunday. This shows a further increase from the previous seven-day average of 261.8 exahashes noted by the recent data from Blockchain.com. However, the Bitcoin mining difficulty constantly changes every two weeks.
It is a measure to determine miners’ effort in verifying transactions in a block, which developers will then add to the blockchain. Moreover, the mining difficulty adjustment heavily depends on changes to the mining hashrate and the amount of computing power utilized for mining purposes.
The mining difficulty is critical to the stability system designed for the Bitcoin blockchain ecosystem. The difficulty level is evaluated every two weeks because blocks require frequent processing every ten minutes.
More miners on the protocol mean a higher difficulty rate due to the need for adjustment. But, more importantly, greater difficulty means improved security for the network because the more miners are available, the stronger the defense mechanism of the blockchain against hacking.
Despite the positives of the network, miners are often at the receiving end of any upward move in mining difficulty.
Bitcoin Funding Rate Hits 6-month High
As the largest crypto asset by market cap, Bitcoin began the second week of the month in uncertainty due to fear, uncertainty, and doubt (FUD). However, the token closed the week with a margin below $21,000 on November 6.
This shows an impressive high for Bitcoin for the first time in weeks. However, Bitcoin is currently stuck in a tricky trading range, with the asset unable to break even from the market’s status quo.
With the upcoming October inflation data about to be announced, Bitcoin stands a chance to move significantly away from the broader market influence. In addition, unemployment claims and multiple speeches from Fed officials are likely to impact the volatility of risk assets like BTC.
Experts admitted that Bitcoin funding rates are spiking on derivatives platforms. This is a reasonable caution to bulls, as funding rates are now at their highest in six months.
Those funding rates are patterns utilized in perpetual contracts to keep their value on par with Bitcoin’s spot price. Meanwhile, high funding rates indicate that the market anticipates the BTC/USD pair to move higher.
In addition, traders are also paying to go long-term with the BTC. It harms the token as the price decline might trigger liquidation for many bullish positions. Over the past 24 hours, Bitcoin has slid by 1.83% and traded at $20,793, as revealed by CoinMarketCap.
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