Bitcoin mining difficulty drops by the largest rate since the ban of China in 2021

Bitcoin mining difficulty has recorded its biggest drop in nearly five years.

This historic decline indicates a double crisis of severe weather restrictions and growing economic pressure on network operators.

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Bitcoin mining economy hacks amid falling prices

According to Mempool developer Mononaut, the network difficulty increased by 11.16% to 125.86 trillion (T) this week.

It should be noted that this adjustment represents the largest yield of mining capacity since July 2021. At the time, Resulted in a government ban in China To a mass exodus of hashing power.

The difficulty adjustment mechanism is designed to keep Bitcoin blocks produced at fixed 10-minute intervals.

When miners stop connecting, block times slow down, prompting the protocol to lower the difficulty to make it easier for the remaining participants to mine.

Unlike the geopolitical shocks of 2021, the current decline is driven by the combination of weather instability and shrinking profit margins.

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This strong contraction comes later Severe winter storms in North America in late Januarydisrupting power grids that serve major mining pools.

In states like Texas, miners participate in “demand response” programs. These operators voluntarily reduce their energy consumption during peak periods to help stabilize the network in exchange for energy credits.

However, the size of this 11% decrease indicates more than just a temporary drop. This indicates the economic yield.

Extreme weather has stressed the electrical infrastructure, driving up spot electricity prices.

For operators using older, less efficient equipment, higher operating expenses are likely to push profitability into negative territory. This financial pressure has led to the permanent or semi-permanent closure of clogs.

It should be noted that the available data indicate that The main players in the industry were already operating with very thin profit margins Before the storms hit.

Ki Young Joo, CEO of the analytical company CryptoQuant, estimated that Marathon Digital, a Bitcoin miner He spent about $67,704 to mine one Bitcoin in the third quarter of 2025.

With Bitcoin trading below $70,000, Many miners operate at a loss Before taking into account other general expenses.