Bitcoin mining difficulty fell by roughly 11% in its latest adjustment, marking the largest decline since China’s 2021 crackdown on the industry, as a combination of falling prices and winter storm–related power disruptions in the U.S. forced miners to shut down equipment.
The change reduced difficulty from more than 141.6 trillion to about 125.86 trillion, according to Blockchain.com data. Mining difficulty is recalibrated roughly every two weeks to keep Bitcoin’s average block time close to 10 minutes.
The drop underscores the mounting strain on miners. Bitcoin has slid from an all-time high of $126,000 in October to around $69,500, squeezing margins across the sector. Mining revenue per unit of computing power has deteriorated sharply, with revenue per petahash falling from about $70 at the peak to roughly $35.
That pressure has pushed many miners—particularly those operating older machines or paying higher electricity costs—to take rigs offline. Some companies have redirected hardware toward artificial intelligence workloads, where large technology firms offer long-term contracts with steadier returns.
Bitfarms highlighted the shift, with its shares jumping after the company said it is pivoting away from bitcoin mining to focus on data center development for high-performance computing and AI applications.
Severe winter storms, especially in Texas, compounded the situation. Power grid operators issued curtailment requests to conserve electricity for residential use, prompting publicly listed mining firms to scale back production. Some reported daily bitcoin output declines of more than 60%.
Although sharp drops in mining difficulty may appear alarming, the adjustment serves as a self-correcting mechanism. For miners that remain online, reduced competition can improve profitability and help stabilize operations.
Historically, significant declines in difficulty have coincided with periods of miner capitulation and have often preceded market stabilization or price rebounds, as miners sell bitcoin to cover operating costs.
