 ▲ Bitcoin (BTC) mining |
Bitcoin (BTC) mining difficulty has fallen by the largest margin since China’s mining ban, marking the beginning of a full-scale survival struggle among miners amid a rapid cooling of the digital asset market.
According to cryptocurrency media outlet BeInCrypto on February 8 (local time), Bitcoin network mining difficulty dropped by approximately 11.16%. This decline represents the largest downward adjustment since the Chinese government imposed a comprehensive ban on cryptocurrency mining in 2021 and ranks as the tenth-largest drop in Bitcoin’s history. As Bitcoin’s price has plunged by around 40% from its peak, deteriorating profitability has forced miners to shut down operations, prompting the network to lower difficulty on its own in an effort to restore balance.
Network data analysis shows that this difficulty adjustment clearly reflects a sharp contraction in the mining ecosystem. Over the past month, the network’s total computing power, or hashrate, has fallen by about 20%. In particular, Winter Storm Fern, which swept across the United States in late January, led to widespread shutdowns of mining facilities to prioritize residential power supply, further accelerating the hashrate decline. According to mining services firm Luxor, the hashrate has dropped from its all-time high of 1.1 zettahashes per second (ZH/s) recorded in October to around 863 exahashes per second (EH/s) recently.
Hashprice, a key indicator of miner profitability, has also plunged to historic lows, putting additional pressure on the industry. As of February 2, hashprice fell to about $0.03 per terahash per day, creating a harsh environment for miners at a time when subsidies have already been halved following the April 2024 halving. Shares of publicly listed mining companies such as MARA Holdings, CleanSpark, and Riot Holdings also posted double-digit declines over the past week, reflecting growing market concerns.
While the past collapse following China’s ban was driven largely by the physical relocation of mining hubs, the current sharp drop in difficulty differs in that it reflects a market reshuffle driven by a combination of economic factors, including falling prices and extreme weather conditions. Experts note that although a decline in difficulty may raise short-term concerns about network security, it also offers mechanical relief to surviving miners by increasing their chances of earning block rewards. In fact, following the difficulty adjustment, hashprice has rebounded slightly, providing temporary breathing room for remaining operators.
Through this difficulty adjustment, the Bitcoin network is once again demonstrating its ability to self-correct in response to rapidly changing conditions. As the downturn persists, the shakeout of smaller, less profitable operators and further consolidation around larger players are expected to intensify. Investors are closely watching whether the hashrate recovers and when signs of miner capitulation come to an end, while calmly assessing whether Bitcoin’s price can establish a true bottom and succeed in reversing the trend.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on it. The content should be interpreted solely for informational purposes.*