Bitcoin's price fluctuations often coincide with macroeconomic events, but an intriguing factor influencing its volatility is the "Bitcoin difficulty adjustment." This self-regulating mechanism occurs approximately every two weeks, adjusting the mining difficulty based on the overall computing power in the network. Interestingly, when Bitcoin's price surges, more miners join the network, triggering a subsequent increase in difficulty. Conversely, during price downturns, some miners may exit, leading to a decrease in difficulty. This delicate dance between price, mining activity, and difficulty adjustment adds a unique layer of complexity to Bitcoin's market dynamics.

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