Crypto Market Sees Complex Trend as Bitcoin Mining Difficulty Drops 15%

The global virtual asset market experienced a complex trend last week, influenced by various factors including Bitcoin's (BTC) mining difficulty drop of 15% compared to its peak at the beginning of the year, high volatility in the U.S. stock market, and blockchain adoption expansion in traditional finance.

According to Crypto.com research, the decline in Bitcoin mining difficulty is attributed to declining profitability for some mining operators, equipment adjustments, and rising electricity costs.

The flow of funds into spot ETFs also diverged, with the U.S. Bitcoin spot ETF experiencing a net outflow of $62 million while the Ethereum (ETH) spot ETF recorded a net inflow of $10 million.

This highlights market risk appetite moving in a limited manner and indicates investors are diversifying towards Ethereum, which is expected to have relatively new demand drivers compared to Bitcoin.