Bitcoin mining difficulty plunges 11%… biggest drop since China’s 2021 mining crackdown

Bitcoin (BTC) mining difficulty fell about 11%, marking the largest downward adjustment since China’s mining restrictions in 2021. The decline is attributed to an accelerating miner exodus as a sharp price drop coincided with power disruptions caused by a cold snap in the United States.

According to cryptocurrency-focused outlet CoinDesk on the 9th, the latest adjustment lowered Bitcoin’s mining difficulty to around 125.86 trillion from roughly 141.6 trillion. Mining difficulty is recalibrated about every two weeks to maintain an average 10-minute block interval, and this decline indicates a steep drop in the number of mining rigs participating in the network.

The adjustment came alongside a fall in Bitcoin’s price. Bitcoin has dropped sharply from its peak recorded in October last year, recently sliding to around $69,000. Analysts say the downturn has led to shutdowns, particularly among miners operating in high बिजली-cost regions or using older equipment.

Hashprice, a key metric of mining profitability, has fallen by roughly half—from about $70 per petahash at the peak to around $35 currently. Some mining companies are reportedly pivoting away from mining toward data-center businesses for artificial intelligence (AI) computing, citing deteriorating profitability.

A powerful winter storm centered on Texas has also added to the strain. As grid operators requested limits on usage to secure residential power supply, there were cases where publicly listed miners’ daily Bitcoin output fell by more than 60%.

Still, some note that a drop in mining difficulty can function as a network-level self-correction. With competition easing, profitability for miners that remain online could improve on a relative basis.

Meanwhile, the market is also noting that in the past, after sharp declines in mining difficulty, miners’ capitulation phases have ended and prices have subsequently stabilized or rebounded. The view is that once the process of miners selling held Bitcoin to cover operating costs runs its course, selling pressure on the market could ease.