The below is a direct excerpt of Marty’s Bent Issue #1240: “Another downward difficulty adjustment is on the way.” Sign up for the newsletter here.Bit
Don’t look now, but July 21, 2022, should bring a downward difficulty adjustment of around 5%, which will be the third consecutive downward adjustment and the fourth over the course of the last five difficulty epochs. Marking the longest streak of downward adjustments since this time in 2021, when miners were forced to unplug and migrate out of China as quickly as possible.
With the global macro outlook deteriorating over the course of 2022 and the bitcoin market experiencing a mass deleveraging event in the wake of Ponzi blow ups with many lenders who were exposed to one particular Ponzi scheme — 3 Arrows Capital — getting completely wiped out and bringing the bitcoin price down with them, bitcoin miners have been feeling the pain. The downward pressure on the price of bitcoin has pushed the hash price down with it; hitting a low of $0.08 TH/day exactly a week ago.
via Braiins Insights
Hash price has since recovered to $0.10 TH/day with the recent pump in price, but it is pretty clear that many players in the mining industry are feeling the pain. The two indicators I am looking at to gauge the pain are publicly-traded miners’ bitcoin treasuries — the holding or selling — and the price of ASICs. Over the course of the last two months, publicly-traded miners have…
