No Sign of Weakness As BTC Prepares for 7% Positive Difficulty Adjustment Today

Bitcoin price lost yet another 16.5% of its value after tanking 16% the week before last. The last week gave the market relief by climbing back above $9,000 but to take a bigger hit to $7,685. If bitcoin experiences half this much of pullback again, we would completely wipe out all the gains made in 2020.

Amidst the ongoing bloodbath, the difficulty of the bitcoin network continues to rise. In yet another positive difficulty adjustment, today will mark strong fundamental growth.

Prominent analyst PlanB who determines bitcoin’s value by using a stock-to-flow model said,

Tomorrow's #bitcoin difficulty adjustment (which keeps time between blocks at 10 minutes, regardless of hashrate) will be a massive +7%! No sign of weakness 2 months before the halving. 🔥 https://t.co/zMdxlteR6Z pic.twitter.com/xtRYcQJgoD

— PlanB (@100trillionUSD) March 8, 2020

In December 2018, the network difficulty bottomed at about 15 trillion just like the BTC hash rate and price. Throughout 2019 and now 2020, the difficulty adjustment has been positive except for in Nov. last year.

Currently, the difficulty of mining a block is at 15,486,913,440,292.87 which will increase between 166.759 trillion to 166.788 trillion.

The hash rate meanwhile made its new high on March 1st at 136.2 Th/s and is currently at 121.6 Th/s. However, the hash rate of the bitcoin network along with the difficulty will continue to climb up even after the halving which is now about two months away.

PlanB explains that historically, the positive difficulty adjustment means,

“hashrate and difficulty will keep rising after the halving, so no “miner capitulation” or “death spiral” despite all FUD.”

Source: PlanB

However, prominent bitcoin whale Joe007 says, this won’t be good for all of the miners.

Translation: Overleveraged miners are going to be unbelievably fucked come halving. And people are cheering on. I can't even… https://t.co/cell0IXGSN

— Joe007 {I identify as Deep Blue whale} (@J0E007) March 8, 2020

No LTC halving FUD for Bitcoin

PlanB also addressed the “LTC halving FUD,” the block reward halving occurred on Aug. 5, 2019. The hash rate of Litecoin bottomed at 150 Th/s in Dec. 2018 just like Bitcoin. From here, it kept on rising until mid-July 2019 reaching its peak at 523.8 Th/s, only to crash afterward to 130 Th/s in Dec. 2019. In 2020, the hash rate of the Litecoin network caught up again and is currently at 189.4 Th/s. PlanB said,

Some people think that because litecoin didn't jump on ltc halving, btc halving will also be irrelevant for #bitcoin. That logic is flawed. LTC price doesn't have a significant relationship with stock to flow, so halvings are indeed irrelevant. BTC price-s2f relation is strong 🚀 https://t.co/5Wx7vHLvUd

— PlanB (@100trillionUSD) August 31, 2019

Your S2F model don't hold much weight. In prior halvening events, Wall Street-controlled futures markets weren't a thing, but they are now. The sharks on Wall St. will squeeze the miners real hard after the halvening.https://t.co/qS3bt6hBeM

— DefiMoon (@DefiMoon) March 8, 2020

This also means things won’t be good for Litecoin, because LTC price doesn’t have any integration with S2F, it means, that the digital asset does not go up after its halving and miners switch off.