The Bitcoin price has recovered from its short-term low and is currently fighting towards $ 7,000. This means that the largest cryptocurrency by market capitalization made strong profits in the short term. After all, the Bitcoin price was below $ 4,000 14 days ago. As far as chart development and price performance are concerned, things are currently looking good. A look behind the scenes strengthens these prospects, even if it doesn’t seem that way at first.
BTC Difficulty falls
The BTC Difficulty suffered a slump on March 26th. The “difficulty rate”, which is sometimes considered an indicator of the security of the network, has fallen by over 15 percent. It is not often that the difficulty falls so much in the Bitcoin network. In fact, there has only been one incident in the past where this happened. The difficulty was also adjusted in 2018; then as well as on March 26, the event followed strong drops in the Bitcoin price.
This is due to the fact that from a certain Bitcoin price it is no longer profitable for some of the “prospectors” to calculate new BTC. After all, mining is an energy-intensive and cost-intensive process. And since bitcoin acceptance is still linked to the equivalent of US dollars, euros, etc., miners also rely on the sale of the cryptocurrency.