Bitcoin’s mining difficulty, a key measure of network security and miner competition, has dropped sharply by over 10%. This marks the second-largest decline this year and signals a significant reduction in active miners. Concurrently, the total computational power securing the network, known as the hash rate, has also fallen substantially. These metrics indicate ongoing pressure on Bitcoin miners amid broader market conditions.
Two of the most important metrics for the overall state of the Bitcoin network have declined recently. The mining difficulty experienced a substantial reduction during the weekend.
This comes amid reports that miners continue to be under severe pressure. Their current state is linked to the broader market’s weakness and reduced revenue.
The latest adjustment took place earlier today, as data from on-chain monitoring sources shows. The difficulty dropped by just over 10%, meaning fewer miners are operating on the blockchain.
This was the second-largest negative adjustment for the year. It follows an 11.16% drop in early February.
The mining difficulty declined from almost 138 trillion to under 125 trillion. Current projections suggest the next adjustment could see a 16% drop.
Meanwhile, the Bitcoin hash rate has continued to decline, according to data from Coinwarz. The total combined computational power is down to under 790 exahashes per second.
The record hash rate was over 1.2 zetahashes per second from a year ago. The current decline indicates a portion of miners have shut off their machines.
Analyst Axel Adler Jr. described their current state as a “stress zone.” This is evidenced by the Puell Multiple 30-day moving average, which fell 11% in less than two weeks.
The raw Puell Multiple is even lower, while the Miner Capitulation metric has declined by 21% lately. That metric tracks the percentage change in BTC’s price since the most recent difficulty bottom.
