Bitcoin

Bitcoin’s Mining Difficulty is Expected To Drop Significantly. Retarget Could Be 2022’s Largest Reduction

Bitcoin’s Mining Difficulty Expected to Drop Significantly, Retarget Could Be 2022’s Largest Reduction

Bitcoin miners could catch a break in a week or so, on or around Dec. 5, 2022, as the next difficulty retarget is expected to see a significantly large reduction. According to estimates, the next difficulty target could fall anywhere from 6. 13% and 10% lower. Presently, the difficulty change looks as though it could be 2022’s largest reduction if it surpasses the 5. 01% decline recorded on July 21.

Bitcoin’s Next Difficulty Retarget Is Expected to Decrease, Data Suggests a Notable Drop in the Cards

When the last Bitcoin difficulty change occurred on Nov. 20, 2022, at block height 764,064, it increased by a mere 0. 51% that day. The increase did, however, propel the network’s difficulty to its lifetime high of 36. 95 trillion. Since then, during the past week, the network’s average hashrate has been around 249.1 exahash per second (EH/s).

Bitcoin’s Mining Difficulty Expected to Drop Significantly, Retarget Could Be 2022’s Largest Reduction — Block times on Nov. 28, 2022, via bitinfocharts.com.

The average Bitcoin network block time has been slower than usual as well, running between 10.2 minutes to 11. 06 minutes on Monday evening (ET). The block intervals have been a lot higher since the difficulty change on Nov. 20, as prior to that day, block times had been on average less than ten minutes since Sept. 29.

The longer block times suggest the 2,016 blocks mined prior to the next retarget will be slower than the average of two weeks. At the time of writing, statistics indicate that the retarget could drop as low as 10% on Dec. 5, and metrics from Btc.com indicate the drop is estimated to be around 6.13%.

Both estimates would outpace the largest difficulty contraction the Bitcoin network has seen all year with the largest decrease so far recorded on July 21, which was approximately -5.01%. Miners are currently dealing with the highest difficulty ever recorded, and bitcoin (BTC) prices are 76% lower than the all-time high ($69K) recorded on Nov. 10, 2021.

Mining insights from braiins.com and macromicro.me show BTC‘s cost of production ($18,360) is above the current spot market value ($16,250). Additionally, market intelligence from Glassnode indicates that bitcoin miners are tapping into their treasuries.

The onchain analytics firm Glassnode tweeted about how the bitcoin mining sector and industry is “under immense financial stress,” while announcing a mining report the firm published with Cryptoslate.

“What we find is that [bitcoin] miners are distributing around 135% of mined coins,” Glassnode said. “This means miners are dipping into their 78K [bitcoin] strong treasuries.” During the latter half of the year, publicly-listed mining operations have disclosed that they have been selling BTC to bolster cash reserves and pay down debt.

At the time of writing at 7: 30 p.m. (ET), Foundry USA’s three-day hashrate is around 60. 66 EH/s, which represents 25. 45% of the global hashrate. In three days, the largest mining pool Foundry mined 98 BTC blocks out of 385 discovered by all the miners.

Foundry is followed by Antpool and F2pool. Binance Pool and Viabtc are the next. Between all five pools over the last three days, the top five mining pools were able to discover 315 blocks out of the 385 total.

This story contains tags

Bitcoin, Bitcoin (BTC), Bitcoin Miners, Bitcoin mining, bitcoin mining sector, block rewards, block times, Blocks, braiins.com, cash reserves, Change in Difficulty, Cost of Production, Cryptoslate, difficulty change, difficulty retarget, glassnode, Hash Price, Macromicro.me, Miners, mining, Mining BTC, Mining Difficulty, Mining Operations, Mining Pools, Mining Report, pay down debt, selling BTC

What do you think about the chance that the next difficulty retarget could be the largest decrease in 2022? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, a journalist and financial tech expert living in Florida, is the News Lead at Bitcoin.com News. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

Bitcoin

Bitcoin Price Watch: $85K Pivot Sets Stage for Weekend Fireworks

Bitcoin traded at $85,287 on Saturday, commanding a $1.69 trillion market capitalization while moving $10.68 billion across exchanges in 24 hours. During the session, the leading cryptocurrency by market cap roamed between $84,366 and $85,398, packing price tension into a narrow corridor that could ignite the next decisive break…
Read More

Bitcoin

MEXC launches STORY (IP) launchpool & airdrop+, offering 68,500 IP & 50,000 USDT in bonuses

MEXC, the world’s leading cryptocurrency trading platform, has announced the launch of its Launchpool initiative in collaboration with the renowned blockchain project STORY (IP). This initiative highlights the close partnership between MEXC and STORY, showcasing their joint efforts to expand the STORY network. By introducing two major events—a Launchpool featuring a 60,000 IP reward pool…

MEXC, the world’s leading cryptocurrency trading platform, has announced the launch of its Launchpool initiative in collaboration with the renowned blockchain project STORY (IP).

This initiative highlights the close partnership between MEXC and STORY, showcasing their joint efforts to expand the STORY network. By introducing two major events—a Launchpool featuring a 60,000 IP reward pool and an Airdrop+ offering 8,500 IP plus 50,000 USDT—this collaboration further accelerates the growth of the STORY network while driving innovation in the blockchain space.

MEXC Supports the STORY Network with the Launch of IP Launchpool

In the digital age, traditional intellectual property (IP) management faces growing challenges. Centralized platforms and complicated intermediaries often lead to inefficiencies, high costs, and trust issues for creators. As a Layer 1 blockchain built with Cosmos SDK, STORY combines DeFi and AI technologies to offer automated, transparent, and cost-effective IP management solutions. With full EVM compatibility and a modular architecture, STORY empowers creators to tokenize their IP assets, automate royalties, and simplify licensing processes. MEXC’s support of the STORY network highlights the growing importance of such innovations in blockchain.

As a global leader in digital asset trading, MEXC consistently supports innovative blockchain projects. Its Launchpool initiative with STORY reaffirms this commitment. This collaboration not only strengthens the STORY ecosystem but also empowers global creators and developers to explore the potential of decentralized IP management. MEXC’s broad market coverage and strong liquidity offer the environment for blockchain projects like STORY to thrive and bring new possibilities to the digital economy. By allowing users to stake USDT, MX, and IP tokens to earn rewards, MEXC provides a platform for increased exposure and growth for STORY. Visit the STORY (IP) pre-market page to see this innovation in action.

Celebrate the IP Launchpool & Airdrop+ with a Prize Pool of 68,500 IP & 50,000 USDT

As a pioneer in the cryptocurrency industry, MEXC continues to foster innovation and support emerging blockchain ecosystems. MEXC is hosting two major STORY (IP) events: the Airdrop+ event, running from February 12, 2025, 10: 00 (UTC) to February 26, 2025, 10: 00 (UTC), featuring 8,500 IP plus 50,000 USDT in rewards, and the Launchpool, taking place from February 12, 2025, 10: 00 (UTC) to February 15, 2025, 10: 00 (UTC), with a 60,000 IP reward pool. These initiatives underscore MEXC’s ongoing commitment to advancing blockchain innovation and delivering valuable opportunities to the crypto community.

These activities include:

Event 1: IP Launchpool – Stake USDT, MX & IP to Share 60,000 IP
Event 2: Join Airdrop+ to Share 8,500 IP & 50,000 USDT bonus
- Perk 1: Deposit and Share 5,600 IP (New User Exclusive).
- Perk 2: Spot Challenge – Trade to Share 1,700 IP.
- Perk 3: Futures Challenge – Trade to Share 50,000 USDT in Futures Bonuses.
- Perk 4: Invite New Users and Share 1,200 IP.

MEXC continues to expand its market share in the centralized exchange space, leveraging its first-mover advantage in listing promising and valuable projects. As one of the leading cryptocurrency exchanges, with its commitment to innovation, user-centric approach, and strategic focus on early-stage token listings, MEXC remains at the forefront of the crypto industry, providing strong access to the rapidly growing blockchain ecosystem.

About MEXC

Founded in 2018, MEXC is committed to being “Your Easiest Way to Crypto”. Serving over 30 million users across 170+ countries, MEXC is known for its broad selection of trending tokens, frequent airdrop opportunities, and low trading fees. Our user-friendly platform is designed to support both new traders and experienced investors, offering secure and efficient access to digital assets. MEXC prioritizes simplicity and innovation, making crypto trading more accessible and rewarding.

MEXC Official Website｜ X ｜ Telegram ｜How to Sign Up on MEXC

Share this article

Bitcoin

Jailed BTC-e operator Vinnik released in US-Russia prisoner swap

US to release jailed BTC-e operator Alexander Vinnik in a prisoner swap with Russia. Vinnik, arrested in 2017, is part of the exchange that saw Russia release jailed US schoolteacher Marc Fogel. Alexander Vinnik, jailed in the US after being convicted on charges of money laundering, is being released as part of a prisoner swap.…

US to release jailed BTC-e operator Alexander Vinnik in a prisoner swap with Russia.
Vinnik, arrested in 2017, is part of the exchange that saw Russia release jailed US schoolteacher Marc Fogel.

Alexander Vinnik, jailed in the US after being convicted on charges of money laundering, is being released as part of a prisoner swap.

The former operator of the Russian crypto exchange BTC-e will head to Russia after the Kremlin reportedly agreed to an exchange involving US national Marc Fogel.

According to the BBC, the White House confirmed the prisoner exchange,with Trump having spoken to Fogel.The schoolteacher left Russia on Tuesday, Feb. 11.

Who is Vinnik?

Alexander Vinnik, 44, is a crypto kingpin that operated the Bitcoin exchange BTC-e. Authorities arrested Vinnik in 2017 in Greece, with the Department of Justice filing charges of money laundering involving nearly $4 billion.

According to prosecutors, Vinnik allowed cyber criminals to use BTC-e to launder and store proceeds of crimes, including crypto hacks, ransomware attacks and identity theft.

The Russian national’s reign at the helm of the exchange saw him promote the platform to perpetrators of these crimes. US authorities blamed him for the loss of $121 million.

Notably, New Zealand police also seized $90 million from the BTC-e operator.

Vinnik’s guilty plea in May 2024 meant he faced up to 20 years in prison.

The prisoner swap that sees him leave custody comes after his lawyers failed in a previous attempt to have included in other US-Russia prisoner exchanges. One such push involved the deal that saw Evan Gershkovich, a Wall Street Journal reporter formerly imprisoned in Russia, released.