Bitcoin mining difficulty sees second negative adjustment following April halving

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Bitcoin mining difficulty sees second negative adjustment following April halving Bitcoin mining difficulty sees second negative adjustment following April halving James Van Straten · 2 hours ago

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Persistent miner capitulation predicted as hash rate sees steepest drop since 2021.

Quick Take

According to Newhedge, Bitcoin’s mining difficulty has decreased by -0.78%. This is the second negative adjustment in the last four, following the Bitcoin halving on April 20. The halving led to a delayed hash rate drawdown due to sustained high fees from Runes, which incentivized some miners to stay online.

Bitcoin: (Difficulty Adjustment Percent Change): (Source: Glassnode)
Bitcoin: (Difficulty Adjustment Percent Change): (Source: Glassnode)

CryptoSlate reports that the hash rate recently experienced the most significant seven-day decline since 2021. Although the hash price has risen from its May 1 lows, it has compressed significantly since the halving. The hash ribbon indicator suggests ongoing miner capitulation, now over three weeks in, with expectations for several more weeks of similar trends.

Hash Ribbon: (Source: Glassnode)
Hash Ribbon: (Source: Glassnode)

Amid these developments, Kerrisdale Capital has taken a short position on Riot stock, criticizing Bitcoin mining. Riot’s shares dropped by as much as 10% on June 5 following the announcement but later recovered most of the decline.

Riot Share Price, Jun 5: (Source: TradingView)
Riot Share Price, Jun 5: (Source: TradingView)

These conditions highlight the current challenges within the Bitcoin mining industry as miners navigate post-halving adjustments.

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