- Bitcoin’s difficulty is expected to decline in the coming days.
- Price of BTC fell along with the velocity of the coin.
Bitcoin [BTC] has been struggling to push past the $65,000 level for quite some time. One of the main determinants of BTC’s price would be the state of miners on the Bitcoin network.
Difficulty declines
A drop of over 6% in Bitcoin mining difficulty is expected for BTC in the next 24 hours. This would be the largest difficulty decrease since FTX collapsed in December 2022, which saw a drop of over 7%.
At press time, blocks were coming in at an average time of 10.7 minutes. The recent difficulty drop is likely due to a decrease in the network’s hash rate, which is the total computing power dedicated to mining Bitcoin.
Source: X
The revenue generated by miners declined significantly as well over the past month, from $72,000 to $59,000.
This decline in revenue can have a severe impact on not only the Bitcoin network, but also BTC’s price.
As miner revenues decline, it gets harder for miners to remain profitable, so miners have to resort to selling their BTC so that they can stay afloat. As a result, selling pressure on BTC increases.
Source: Blockchain.com
State of the Bitcoin network
Another thing that can impact miner revenue and BTC’s price would be the activity on the Bitcoin network. At the time of writing, Daily Active Addresses on the Bitcoin network had declined significantly.
This slowdown in activity could signal a potential decline in interest in Bitcoin’s ecosystem, which may impact sentiment around the network in the long run.
Source: Santiment
At press time, BTC was trading at $61,655.60. Also, the velocity at which BTC was trading at had plummeted significantly in the last few days.
A falling velocity implied that the frequency with which BTC was being traded at had declined.
Source: Santiment
Read Bitcoin’s [BTC] Price Prediction 2024-25
Traders turned optimistic
Despite these factors, the traders remained hopeful about the future of BTC.
AMBCrypto’s examination of Coinglass’ data revealed that the percentage of long positions taken in favor of BTC had grown from 48% to 52% over the last few days.
Source: Coinglass