According to btc.com data, the Bitcoin network adjusted to the massive drop in hash rate, the network’s mining difficulty dropped by -27.9%. This is the biggest drop in mining difficulty since the network went live in 2009.
— Danny Scott (@CoinCornerDanny) July 3, 2021
The Bitcoin network updates its mining difficulty level every 2,016 blocks, roughly every two weeks. This is designed to ensure that blocks are produced every ten minutes despite a fluctuating hash rate. For this reason, the hash rate has been volatile throughout Bitcoin history. Since the previous adjustment on June 13, Bitcoin’s seven-day moving average hashrate has dropped from 136.47 EH/s to 85 EH/s: a 35% drop.
Recently Bitcoin network faced two negative adjustments, -5.30 percent on June 14 and -15.97 percent on May 30, And on July 3rd, 2021 the network’s mining difficulty dropped by -27.9%.
Estimated next BTC mining difficulty, which will be calculated after 16 days hints further -28.39% drop.
This decline was largely due to a crackdown on Bitcoin mining in China. Saturday’s record decline was by a much higher percentage than had been predicted a week ago.
The said low hashrate led to a slower block generation rate as the remaining hashrate could not keep up with the high difficulty level. For the past two weeks, according to calculation, blocks have been produced on average almost every 13.9 minutes, which is much higher than usual. On July 1, it even took 129 minutes to create a block, the longest since 2011, but it’s worth noting that multiple factors come into play here, including the natural variance in block times.