At some point on Sunday, BTC’s mining difficulty declined by 5.3% due to the current hash rate drop-off. On-chains stats indicate that the asset’s mining difficulty dropped to 19.8 trillion, the lowest level since early this year.
The mining difficulty refers to how the network can ensure balanced rates on the produced blocks, regardless of the highly volatile hash rate. After two weeks, it either makes the process to mine BTC harder or easier to accommodate the fluctuating hash rate.
Keep in mind that the network had its hash rate stable after the last difficulty modification on 30th May. However, on 9th June, Xinjiang miners received instructions to ban crypto mining activities. Keep in mind that China launched multiple clampdowns since last month on crypto deals. The regulators stormed the Xinjiang mining hub clamping down on BTC mining and trading activities. With the news, the Chinese BTC mining pools witnessed a significant hash rate plunge, average more than 20% drops.
According to data, from the previous modification to 9th June, BTC has an average block formation of about 9.9 minutes. That is close to a block every ten minutes’ target. However, with the hash rate drop, the block production interval extended to over twelve minutes from 9th to 14th June.
At the moment, BTC nears the $40K level after jumping to over $39K. The difficulty decline can be good news for crypto miners.
BTC’s Break’s Out
Following Elon Musk’s tweet, BTC saw notable breakouts over the last 24 hours. The Tesla executive declared that his car company would accept BTC activities if mining would utilize 50% renewable energy. Moreover, the CEO denied manipulating the crypto market movements.
In a tweet about CoinTelegraph on an article accusing him about crypto market manipulation, Elon Musk replied that the suggestions are inaccurate.
Musk also commented on his company selling 10% of BTC holding to test market movements. At the moment, market players anticipate the next move between BTC and Tesla firm.
BTC’s value surged by more than $1,500 after Musk’s tweet that came one month after Tesla banned BTC payments due to environ-concerns.