Bitcoin Mining Difficulty Hits Its Biggest Drop Since 2021 China Ban

Bitcoin's mining difficulty experienced an 11.16% downward adjustment, marking the largest drop since China's state-mandated ban forced miners offline in July 2021. This adjustment mechanism lowers difficulty when miners go offline, stabilizing block times. Unlike the 2021 geopolitical shock, the current decline is attributed to a combination of severe winter storms across North America straining energy grids and already thin profit margins for miners. Extreme weather spiked power prices, pushing less efficient operators into unprofitability, leading to shutdowns. Data suggests major industry players, like Marathon Digital, were already facing high costs, with estimates showing the cost to mine one BTC nearing $67,704 in Q3 2025, meaning many miners were operating at a loss even before the weather-related expense surge.

(Source：BeInCrypto)