Bitcoin Mining Difficulty Drops Year Over Year, Rare Event in Crypto History
Bitcoin mining metrics are showing unusual weakness, notes Joao Wedson. According to him, this downturn is not just a temporary fluctuation in hash rate but marks only the second time in Bitcoin's history that mining difficulty is lower on a year-over-year basis.
This comes as an extension of Wedson's earlier analysis of Bitcoin's liquidation dynamics and his observation that a move to $57,000 or lower remained possible due to market traps persisting. He also reported that Dogecoin was trading near a historically rare undervaluation based on the CVDD Channel.
The mining difficulty drop is an unusual event in the history of Bitcoin, with only one other instance where it has been lower year-over-year. Wedson's observations highlight the ongoing technical shifts across major cryptocurrencies.