Bitcoin mining difficulty has plunged by 11.16%, marking its largest drop since China’s 2021 mining ban. The adjustment to 125.86 trillion followed a reduced network hashrate, attributed to a crypto market downturn and operational disruptions from severe U.S. winter storms. Major mining pool Foundry USA saw its hashrate temporarily cut nearly in half. Analysts predict another potential decrease in late February as some miners shift resources to more profitable ventures like AI computing.
Bitcoin mining difficulty dropped 11.16% in the latest network adjustment, marking the biggest decline since China’s 2021 crypto mining ban. Data from CoinWarz shows the difficulty lowered to 125.86 trillion, with average block times stretching beyond 11 minutes.
Two primary factors drove this decrease: a crypto market downturn squeezing miner profits and a severe winter storm disrupting U.S. operations. Winter Storm Fern caused widespread power outages, forcing mining facilities to temporarily shut down or reduce activity.
The leading Bitcoin mining pool, Foundry USA, lost almost 60% of its hashrate due to the storm, falling from approximately 400 EH/s to around 198 EH/s. Its hashrate later recovered to greater than 355 EH/s, maintaining its dominant market position.
Beyond weather, the mining industry faces structural challenges as some companies divert resources toward AI data centers for better margins. The overall Bitcoin network hashrate reached a four-month low in January, indicating this trend continues.
Coinwarz predicts another difficulty decrease of approximately 10.4% could occur on February 23rd. This would bring the mining difficulty to 112.7 trillion if current trends persist.
