Bitcoin mining difficulty has seen its biggest downward adjustment in history as it drops 28%
According to On-chain market analysis company Glassnode, the 28% decline is the biggest adjustment in history for bitcoin. The latest drop now sees bitcoin’s total hash rate at roughly 87.6 TH/s. The drop means the total hash rate is now at a 19-month low. The last time the hash rate was this low was in December 2019.
Last week saw the total hash rate hit a new yearly low as it reached 101.9 TH/s. However, the total hash rate has continued to slide, with the massive 28% adjustment dropping the hash rate dramatically.
On-chain analyst, Willy Woo commented on the recent adjustment, relating the biggest downward adjustment in history “miner’s capitulation.” Woo also blamed the continued downtrend in the mining hash rate to China.
The country has been taking extreme measures to rid itself of bitcoin mining operations in the country. The ban of mining has seen an exodus of mining companies move off-shore or shut down completely as China focuses its attention on its Central Bank Digital Currency (CBDC).
Bitcoin inflation rate hits lowest in history
Glassnode have also previously reported that the inflation rate of bitcoin recently hit 0.71%, which was the lowest inflation rate in history for the cryptocurrency. This can be attributed to the decline in hash rate power. Blocks continue to be mined slower as large volumes of hash-power come off the network.
Bitcoin miners are currently looking for new locations to continue mining operations. With the US and Kazakhstan looking like the most favorable locations for miners coming from China. Miners have already begun moving into Kazakhstan, with the country recently also announcing new electricity surcharges for incoming miners.
Texas also appears to be a key location for miners looking to continue their operations. Texas offers low electricity prices with a pro-crypto outlook. Something that could benefit new mining operations moving forward.