The Bitcoin Blockchain is experiencing its biggest fall in mining difficulty. As the network’s automatic fixing mechanism kicked in following a tough crackdown by China on the country’s cryptocurrency market. At 6:25 UTC Saturday, mining difficulty dove to nearly 28% at block 689,471.
The sharp decrease in difficulty caused a corresponding drop in transaction fees. Which it could have contributed to a $1,000 surge in the price of the leading cryptocurrency on anticipation of a jump in transactions fees based on an observer. In recent trading, the price of BTC was at $34,738, up 3.58% in the last 24 hours. Before the decline in mining difficulty, BTC was about $33,700.
Charlie Morris, is the CIO of ByteTree Asset Management. He tweeted a couple of hours after the difficulty cut that fees, decreased to $6 from $10 yesterday.
The regulation marks the third straight drop in mining difficulty. This is the first time such a trend took place since December 2018. On May 29 and June 13, the mining difficulty fell by 16% and 5%, respectively. Based on mining service provider BTC.com.
Bitcoin, and its price, was mostly fixed on Friday as buyers and sellers seem to be in a deadlock. The world’s biggest cryptocurrency is up about 6% over the past week. And also we expect to hold support above $30,000 into the weekend.
In traditional markets, the S&P 500 and Nasdaq touched all-time highs after a better-than-expected U.S. jobs report on Friday. At the moment, sentiment for risky assets seems to be alive as well as volatility decreases in both traditional markets and bitcoin.
Crypto connected stocks such as Coinbase and Riot Blockchain outperformed bitcoin over the past few months. Although that was in a tight range. Some traders are searching for a breakout or breakdown in stocks as a leading signal for bitcoin in the next weeks.
Some digital asset analysts and investors in the market, say that it’s likely some of these investors may require to go the market to buy bitcoin in order to repay cryptocurrency loans they took to manage their primary purchases of the GBTC shares.