$BTC Mining difficulty adjustment just landed: -9.13%
The news we’ve been waiting all morning for is finally here
At block 975,744, difficulty was cut from 148.36T to 134.82T
The biggest downward adjustment since June; that one was -10.09%
The next adjustment is on November 29
Why such a big cut?
Blocks came in too slowly over the past two weeks, averaging one every 11 minutes against a 10-minute target
Simply put, hashrate left and miners couldn’t keep up
Good news for miners
According to Hashrate Index’s estimate on November 9, a 6.5% cut would lift hashprice from $31.89 to around $34.11
Now that the actual cut is 9.13%, the breathing room will be even greater
But don’t rush to declare the mining crisis over
Older mining rigs are still unprofitable
For the 95T S19 model, the break-even electricity price is only 4.15 cents; at 5 cents per kWh, mining is still losing money
This difficulty cut helps newer machines. Older ones will still have to be shut down
And miners were already selling this week
2,077 BTC moved to exchanges, 16 times the 30-day average
Difficulty adjustments are a lagging indicator: hashrate leaves first, and difficulty adjusts afterward. Don’t treat this as a signal to buy the dip
The price hasn’t changed either
The current price is $67,163, still languishing below the 200-week moving average at $67,900. Today’s low touched $66,456
My view hasn’t changed: neither buy the dip nor short the rally; wait for Sunday’s close
Personal analysis, not investment advice
#BTC
The news we’ve been waiting all morning for is finally here
At block 975,744, difficulty was cut from 148.36T to 134.82T
The biggest downward adjustment since June; that one was -10.09%
The next adjustment is on November 29
Why such a big cut?
Blocks came in too slowly over the past two weeks, averaging one every 11 minutes against a 10-minute target
Simply put, hashrate left and miners couldn’t keep up
Good news for miners
According to Hashrate Index’s estimate on November 9, a 6.5% cut would lift hashprice from $31.89 to around $34.11
Now that the actual cut is 9.13%, the breathing room will be even greater
But don’t rush to declare the mining crisis over
Older mining rigs are still unprofitable
For the 95T S19 model, the break-even electricity price is only 4.15 cents; at 5 cents per kWh, mining is still losing money
This difficulty cut helps newer machines. Older ones will still have to be shut down
And miners were already selling this week
2,077 BTC moved to exchanges, 16 times the 30-day average
Difficulty adjustments are a lagging indicator: hashrate leaves first, and difficulty adjusts afterward. Don’t treat this as a signal to buy the dip
The price hasn’t changed either
The current price is $67,163, still languishing below the 200-week moving average at $67,900. Today’s low touched $66,456
My view hasn’t changed: neither buy the dip nor short the rally; wait for Sunday’s close
Personal analysis, not investment advice
#BTC
