Following a fresh wave of regulatory crackdown on cryptocurrency mining operations in China, bitcoin saw a historic difficulty readjustment of nearly 28% last Saturday. The bitcoin network automatically adjusts the level of difficulty it takes to find a new block approximately every two weeks, or 2016 blocks, based on the amount of computing power on the network, so that new blocks are added on average every 10 minutes. In the near term, the remaining miners, especially those outside of China, stand to collect larger profits, however the market shows signs of stagnation.
Bitcoin is struggling to break out of the $34,000-range, trading at $34,618 as of 6:50 a.m. ET. According to data from Coinbase, bitcoin’s price has been range-bound between $33,197 and $35,909 over the last five days, with a five-day change of +2.4%.
“Bitcoin is in a consolidation phase between $30,000-$42,000 zone and we expect it to spend the next few weeks testing this range on either side,” wrote Pankaj Balani, CEO of crypto derivatives platform Delta Exchange, in a message to Forbes. “There are limited catalysts here for any break on the upside in the short term; on the downside however weakness in the economic