Bitcoin Mining Difficulty Falls 18.5% From Peak, Biggest Drop Since China’s 2021 Ban

Bitcoin mining difficulty has fallen about 18.5% from the record high set on July 16, the steepest decline since China banned Bitcoin mining in 2021, according to Unfolded on Aug. 10.

Unfolded wrote that the drop was smaller than the roughly 32% decline during the 2018 bear market and the 45% slide in 2021. Historically, sharp declines in mining difficulty have often coincided with the bottom phase of market cycles.

Still, a prolonged downturn could deepen financial strain on miners and trigger capitulation selling. If Bitcoin rebounds after that capitulation phase ends, the latest difficulty adjustment could serve as a catalyst for a bullish reversal.