- Bitcoin difficulty is expected to decrease in the coming days.
- BTC price has fallen along with the coin's velocity.
Bitcoin [BTC] It has been struggling to break out of the $65,000 level for quite some time. One of the main determinants of BTC price is the status of miners on the Bitcoin network.
Difficulty level decreases
Bitcoin mining difficulty is expected to drop by more than 6% in the next 24 hours. This is the biggest decline in difficulty since FTX went bankrupt in December 2022 and saw a decline of more than 7%.
At the time of writing, blocks were arriving in an average of 10.7 minutes. The recent drop in difficulty can be attributed to a drop in the network's hash rate, which is the total computational power devoted to mining Bitcoin.
Source:X
The revenue generated by miners also fell significantly, from $72,000 to $59,000 in the last month.
This decrease in revenue could have a severe impact not only on the Bitcoin network, but also on the price of BTC.
As miners' revenue decreases, it becomes difficult for miners to continue making profits, so they must resort to selling BTC to survive. As a result, selling pressure on BTC increases.
Source: Blockchain.com
Bitcoin network status
Another thing that can affect miner earnings and the price of BTC is activity on the Bitcoin network. At the time of this writing, daily active addresses on the Bitcoin network had significantly decreased.
This slowdown in activity could indicate a potential decline in interest in the Bitcoin ecosystem, which could impact overall network sentiment in the long term.
Source: Santiment
At the time of writing, BTC was trading at the following prices: $61,655.60. Additionally, BTC transaction speed has significantly decreased over the past few days.
The speed of the decline means that BTC is being traded less frequently.
Source: Santiment
read bitcoin [BTC] Price prediction for 2024-2025
Traders became optimistic
Despite these factors, traders remained hopeful about BTC's future.
AMBCrypto investigated data from Coinglass and revealed that the percentage of long positions in favor of BTC has increased from 48% to 52% over the past few days.
Source: Coinglass
