Bitcoin (BTC) has recovered the $35,000 region after the largest difficulty adjustment in history. Most of the virtual currencies in the world are now experiencing moderated gains that range between 0.6% to 2.2% (among the top 10) in the last hour. At the same time, Bitcoin miners are searching for new jurisdictions to operate in after China’s decision to expel Bitcoin miners.
Bitcoin Surges Above $35,000
Bitcoin has surpassed $35,000 once again and for the first time in July. In the last 30 days, Bitcoin’s maximum price was just above $40,000 and then it has ranged between $32,000 and $34,500. In the last 24 hours, Bitcoin has surged by 3.6% and it has gained more than 10% in the last 7 days.
One thing that we should pay close attention to is the decreasing volume. We have seen that trading volumes have been decreasing in the last few days and they are at the lowest point since the recent bull market started in December 2020.
How long will the current bullish strength keep? It is hard to tell. Nonetheless, Bitcoin should register larger gains if it wants to show that it could reach new all-time highs this year.
Bitcoin Mining Difficulty Adjustment
The Bitcoin network has also experienced a new difficulty adjustment. This happened a few days after the decision of several Chinese regions to ban Bitcoin mining activities. These Bitcoin miners are now off the rig and it could take some time before we see them operative again.
The difficulty adjustment has been the largest decline in the history of Bitcoin. It has registered a 28% decline. It is possible to understand this situation if we see that hash rate has reached the lowest point since December 2019.
Despite that, there are some regions around the world that are already welcoming new investors and Bitcoin miners. This could definitely help the entire crypto ecosystem to recover from the recent mining ban in China.
The Republican Senator Cynthia Lummis invited Bitcoin miners to relocate their activities in the state of Wyoming. One of the main issues related to Bitcoin mining is energy consumption. China was worried about Bitcoin’s usage of non-renewable energies. Mainstream media has also complained about this issue.
However, in Wyoming, it might be possible for Bitcoin miners to rely on 40% of renewable energy sources rather than traditional mining methods.