Bitcoin mining difficulty just fell by a record 28%
07 Jul 2021 #Bitcoin
Bitcoin (BTC) has recorded its biggest mining difficulty drop of nearly 28% on July 3, but one model suggests that the BTC price will not bottom until October. In a series of tweets on July 2, investment manager Timothy Peterson flagged the relationship between Bitcoin price and hash rate as arguable evidence that the dip is not over.
Bitcoin mining difficulty dropped by an estimated 27.94% on Saturday at block height 689,472, the biggest in its history. As Cointelegraph previously explained, the drop is in response to the ongoing miner migration out of China and the subsequent loss of hash rate. For miners still at work, the decrease will be something of a profit boost — difficulty automatically accounts for changes in hash rate, making it more attractive to mine when it drops.
Miners in flux are not expected to return to their craft completely for several months. In that time, difficulty will likely increase again as hash rate goes up — more competition and more power competing for the same set reward. It is a classic mantra among Bitcoiners that “price follows hash rate” — but if that is true, one model charting the phenomenon is painting a sobering picture of future price behavior. Peterson noted that the relationship between price and hash rate is “useful” when it comes to marking macro price tops.
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | Volume 24h | |
| 1 |  BTC |
Bitcoin predictions | 82.8% | 24 | $48 068.38 | -0.43% | 2.90% | $904 552 592 109 | $30 966 097 189 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 71.6% | 52 | $3 564.24 | -1.78% | 3.14% | $418 997 277 161 | $18 764 428 420 | |
| 3 |  ADA |
Cardano predictions | 66.4% | 64 | $2.43 | -1.86% | -4.99% | $77 762 171 546 | $3 085 080 557 | |
| 4 |  BNB |
Binance Coin predictions | 63.6% | 70 | $423.38 | -1.83% | -1.23% | $71 186 613 232 | $1 670 523 937 | |
| 5 |  USDT |
Tether predictions | 95.2% | 1 | $1.000511 | 0.01% | 0.05% | $68 288 855 645 | $74 100 163 467 | |
| 6 |  XRP |
XRP predictions | 72.8% | 55 | $1.096014 | -2.04% | -3.72% | $51 098 642 600 | $2 972 959 907 | |
| 7 |  SOL |
Solana predictions | 56.8% | 89 | $149.74 | -5.57% | -21.61% | $44 447 194 000 | $3 259 409 601 | |
| 8 |  DOT |
Polkadot predictions | 58.4% | 83 | $36.69 | 2.33% | 14.49% | $36 235 518 897 | $2 308 494 829 | |
| 9 |  DOGE |
Dogecoin predictions | 66% | 65 | $0.257382 | 4.84% | 0.32% | $33 796 922 711 | $1 760 021 804 | |
| 10 |  USDC |
USD Coin predictions | 96% | 1 | $1.000184 | 0.01% | 0.02% | $29 237 308 733 | $2 846 778 419 | |
| 11 |  UNI |
UniSwap predictions | 73.6% | 56 | $25.95 | -4.24% | 8.79% | $15 869 589 993 | $590 249 626 | |
| 12 |  LUNA |
Terra predictions | 68.4% | 67 | $36.55 | 0.26% | 12.35% | $14 691 406 586 | $1 543 465 878 | |
| 13 |  AVAX |
Avalanche predictions | 65.2% | 69 | $64.75 | 9.96% | 46.82% | $14 264 323 937 | $2 618 327 427 | |
| 14 |  LINK |
Chainlink predictions | 74% | 55 | $30.07 | -4.45% | 3.96% | $13 594 035 693 | $1 522 191 986 | |
| 15 |  BUSD |
Binance USD predictions | 91.6% | 1 | $1.000216 | 0.01% | 0.02% | $12 747 588 570 | $6 369 639 162 |
