Bybit
Bitcoin Mining Difficulty Drops 11% in Largest Fall Since 2021
Bitcoin mining difficulty recorded its steepest decline in years, falling 11.16% in the latest adjustment period. According to CoinWarz data, this marks the largest single drop since China’s crypto mining ban in 2021.
The network difficulty now stands at 125.86 T and took effect at block 935,429. Average block time slipped to 9.47 minutes, moving below Bitcoin’s 10-minute target. This indicates reduced competition among miners and lower total computational pressure on the network.
Despite the sharp decline, the adjustment may be temporary. Current projections suggest the next difficulty recalculation on February 20 could bring a rebound of about 5.63%. If confirmed, difficulty would rise to roughly 132.96 T, still below recent peak levels.
Market stress and winter storms hit hashrate
The difficulty drop coincided with a broader downturn in crypto markets. Bitcoin has lost more than 50% from its all-time high above $125,000 and recently traded near $60,000. As prices fell, many miners faced shrinking margins and reduced operations.
Severe winter weather in the United States added further pressure. A major January storm affected more than 30 states, disrupting power infrastructure and forcing miners to curtail energy usage. Temporary shutdowns reduced overall network hashrate.
Foundry USA, the world’s largest Bitcoin mining pool, briefly lost close to 60% of its hashing power during the storm. Its hashrate dropped from nearly 400 EH/s to around 198 EH/s before recovering above 350 EH/s.
Structural shifts reshape mining economics
Total Bitcoin network hashrate fell to a four-month low in January. Beyond weather and prices, structural changes are also influencing the sector. Some mining companies are reallocating resources toward AI data centers and high-performance computing services.
Lower difficulty temporarily improves profitability for miners who remain online. However, this advantage is short-lived. As hashrate recovers and difficulty rises, margins are expected to tighten again.
Overall, the sharp difficulty adjustment highlights a period of transition. Bitcoin’s network continues to adapt to market cycles, energy constraints, and evolving industry strategies while maintaining operational stability.
