The Bitcoin network’s mining difficulty has experienced its largest negative adjustment since December 2022, when the bear market was in full gear.

According to data from the real-time Bitcoin dashboard Bitbo, the mining difficulty fell 5.7% to 83.1 trillion on Thursday at block height 842,688.

Bitcoin Mining Difficulty Negatively Adjusts

Bitcoin’s mining difficulty measures how tough and time-consuming it is to produce a new block. The difficulty rises when the number of active miners increases and falls when it decreases, easing the mining process for other miners.

The mining difficulty automatically adjusts after every 2,016 blocks, which is roughly every two weeks, to ensure that a new block is produced every 10 minutes on average, notwithstanding the number of active miners.

The last time Bitcoin witnessed a negative adjustment similar to the one it recorded today was 18 months ago when BTC’s price stood at $17,000. At the time of writing, BTC was changing hands at $61,700.

Interestingly, crypto derivatives exchange Bitget reported two days ago that the Bitcoin mining difficulty was on course to see its largest drop since the implosion of the bankrupt crypto exchange FTX. This was due to the 10% decline in the Bitcoin network hash rate. However, Bitget said on-chain data suggested that the mining difficulty would plummet by just 4%.

In addition, Bitget said the fall in mining difficulty may alter the balance between miner profitability and operating costs, signaling that financial dynamics are changing.

Miners Face Lesser Struggles

The latest adjustment in Bitcoin mining difficulty comes roughly three weeks after the completion of the fourth halving, which slashed miners’ block rewards from 6.25 BTC to 3.125 BTC. The adjustment may make mining blocks slightly easier than in the past two weeks, relieving miners of their post-halving struggles.

Before and after the halving, Bitcoin mining difficulty rose 4% and 2%, respectively, reaching 88.1 trillion for the first time. These positive adjustments could be attributed to the hype around the launch of the Runes protocol and miners increasing their hash rates in anticipation of the slash in block rewards. Notably, the mining difficulty also spiked 8.2% in February to a record high of 81 trillion.

With Bitcoin’s hash rate, mining difficulty, and transaction fees having fallen, it remains to be seen how miners will navigate the current crypto environment without going underwater.

MarketVector, a subsidiary of the renowned American asset management giant VanEck, has launched the MEMECOIN Index. It has shown impressive performance, surging 195% in the past year and 137% since the start of 2024.

This index aims to track the performance of six popular meme coins, such as DOGE, SHIB, and others.

VanEck’s MEMECOIN Index

The acceptance of meme coins within the cryptocurrency community is gaining traction, notably with the introduction of the “meme coin asset class” by traditional finance (TradFi).

VanEck’s @MarketVector launches $MEMECOIN index, top 6 assets, 30% cap.
Warns potential customers: “These coins are intended for entertainment purposes” pic.twitter.com/ihjhfCNIR4

— matthew sigel, recovering CFA (@matthew_sigel) May 8, 2024

These assets are Shiba Inu (SHIB), Dogecoin (DOGE), Dogwifhat (WIF), Bonk (BONK), Pepe (PEPE), and Floki (FLOKI).

DOGE is in the lead, contributing 30.64% to index weighting, followed closely by SHIB at 28.01%. Pepe (PEPE) is at 14.51%, Dogwifhat (WIF) at 12.54%, Floki Inu (FLOKI) at 7.14%, and lastly BONK at 6.7%.

A tool for institutional and retail investors, the index uses a cap of 30% on individual coin weightings to ensure diversification and protect against influence from any single asset. Monthly index reviews ensure its relevance and adaptability to the changing meme coin market.

For institutional investors, the index offers a structured entry point into a market characterized by volatility and speculation. By providing a consolidated view of the most influential meme coins, the index mitigates the need for direct exposure to individual assets, providing a sense of security amidst uncertainty.

Retail investors can use the index to gauge their favorite meme coins’ relative performance and market share, empowering them to make informed investment decisions.

Mainstream Meme Coin Acceptance

The launch of VanEck’s MEMECOIN index marks a significant milestone in the mainstream acceptance of meme coins within the cryptocurrency landscape. Some crypto community members took to X to speculate that cat-themed tokens could soon make their way into the index.

Meanwhile, recognizing that meme coins are a focal point for speculative liquidity worldwide, the asset manager has issued a disclaimer stating, “The coins are intended for entertainment purposes.”

The MEMECOIN Index has already captured attention with its performance. Despite a minor dip, it has surged by 195% over the past year, showing explosive growth and speculative interest in this unique segment of the crypto market.

Meme coins may seem unconventional, but they highlight the power of community in crypto. Building a successful project, meme-based or not, takes dedication.

Let’s see what the next bull cycle brings! 👀 pic.twitter.com/S40tXLhSO3

— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 1, 2024

During the Token 2049 event, Justin Sun, founder of Tron and advisor to Huobi Global, weighed in on the phenomenon of meme coins. In a post-event reflection, Sun remarked, “Meme coins may seem unconventional, but they highlight the power of community in crypto.”

Bitcoin whales have begun to make substantial BTC purchasing moves, signaling market participants’ entrance into a re-accumulation phase.

According to a tweet by blockchain analytics platform Santiment, large investors holding 1,000 to 10,000 BTC collectively accumulated more than $941 million worth of the asset in the past 24 hours.

Bitcoin Whales Accumulate BTC

The amount of BTC whales accumulated in the past 24 hours increased their holdings by 15,121 BTC, bringing their collective stash to its highest level in two weeks. Santiment said this move signifies whales’ confidence in the Bitcoin market.

The resurgence of BTC accumulation by whales comes after weeks of massive selling and profit-taking. CryptoPotato reported in late April that on-chain analysts highlighted a surge in inflows to centralized crypto exchanges, dominated by assets from Bitcoin whales. This was after the market participants witnessed a spike in their unrealized profits following BTC’s surge past $60,000.

Currently, the cryptocurrency ranges between $60,000 and $64,000 and has been trading within that level for weeks, presenting an opportunity for investors to buy the dip in anticipation of the peak of the bull cycle.

Bitcoin Inflows Appear to be Picking Up

Santiment’s analysis aligns with those of other on-chain experts, who have stated that inflows into the Bitcoin network appear to be picking up. Last week, Bitcoin whales purchased 47,000 BTC worth more than $2.8 billion within 24 hours. CryptoQuant CEO Ki Young Ju said the large accumulation signaled the beginning of a new era for the leading cryptocurrency.

Popular Bitcoin analyst Willy Woo recently said in an X post that BTC investors appear to be accumulating the digital asset again; however, it may take a week to confirm the trend reversal correctly.

Earlier this week, analysts at crypto exchange Bitfinex said some on-chain metrics suggest that selling pressure from BTC investors may be waning, indicating that a price recovery may be on the horizon.

In addition, the United States spot Bitcoin exchange-traded fund market is seeing more positive flows than last week. While the market recorded only one day of inflows last week, it has seen two this week.

The latest move by Bitcoin whales signals the onset of a post-halving re-accumulation phase, which is expected to last weeks before the bulls take over.