There could be a reduction in Bitcoin mining difficulty by 1.29%, suggesting it will not reach its all-time high of May. In the last weeks, the hash rate of Bitcoin has fallen slightly to 157 Eh/s.

For the first time in five months, the difficulty of mining Bitcoin fell by 1.5%. The adjustment, occurring every 2,016 blocks, only rose nine times in a row and recently fell slightly; ending its streak.

Bitcoin mining difficulty rose by 52.48% for 18 weeks, marking the longest streak of positive adjustment in three years. The highest increase was 13.24%, while the lowest was 0.95%.

The upcoming change on December 12th could reduce the difficulty of mining Bitcoin by 1.29%. It is not much, but it means that it will not reach its all-time high of 25 T of May for now.

In July, when the repression by the Chinese government was in full swing, Bitcoin mining difficulty fell to a low of 13.67 T. The difficulty on the network is currently 22.34 T, lower than in the last weeks.

It Is Easier to Mine Bitcoin Thanks to Low Difficulty

All seems to indicate that it will remain low until late in December. That means that miners can mine coins more simply, as the price of Bitcoin drops below USD 57,000.

In the last weeks, the hash rate of Bitcoin has also fallen slightly and is currently at 157 exahashes per second (Eh/s). According to BTC.com, that is a pullback after hitting a high of 178 EH/s on November 24th. However, it continues to be well above the low that the Chinese repression against the mining business induced.

The hash rate of Bitcoin fell to 65 Eh/s in late June, following the bans against cryptocurrency mining in the Asian country. However, it has been able to recover to the point of tripling its previous level.

There Is a Growing Correlation between Bitcoin and Traditional Assets

The organic decrease when reaching an all-time high contributed to the drop in the price of Bitcoin, said eToro analyst Simon Peters.

The fear of new restrictions due to a new variant of COVID-19 also motivated the decline in the price. Shares and traditional indexes also suffered the fall that Bitcoin experienced last week, reflecting a growing trend towards correlating the pioneering cryptocurrency with those assets.

In addition, Jerome Powell, president of the Federal Reserve, announced that they would remove the qualifier of transitory from inflation. That led to a temporary decline in the price of Bitcoin.

The Price of Bitcoin Reaches Its Highest Monthly Close in October

The monthly close of Bitcoin in October was the highest in its history, ending the month at USD 61,309. Its latest record occurred in March, as Bitcoin peaked at USD 58,763. In October, it reached a 40% return, the highest this year and the highest since December 2020 when it was 47%.

The bullish momentum in October included a new all-time high of the value of Bitcoin close to USD 67,000. The opening price of USD 43,823 surged by USD 17,483 during the month, representing a record monthly increase.

Bitcoin is trading at around USD 56,607 and has accumulated a loss of 2.4% in the last 24 hours. Its daily trading volume is above USD 33.31 billion, and its market capitalization is about USD 1.06 trillion, according to CoinGecko.

By Alexander Salazar

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