Why Bitcoin’s Mining Difficulty Just Plunged 11 % ?

The Bitcoin network has just absorbed a major technical shock. Its mining difficulty dropped by 11.16 %, representing the biggest decline recorded since the mining ban in China in 2021. This sharp retreat, indicative of structural tensions, revives concerns about the system’s robustness and the increasing pressure on mining companies. While difficulty is supposed to guarantee protocol stability, its current crash acts as a silent warning about the true state of the network and the resilience of its infrastructure.

A Sudden Dive into the Network’s Mechanics

The difficulty of Bitcoin mining has experienced a spectacular drop of 11.16 %, falling from 141.61 T to 125.86 T at block 935,429.

This adjustment represents the largest single drop since the mining ban in China, with comparable declines recorded between 12.6 % and 27.9 % during 2021 episodes. The average time required to mine a block recently stood at 9.47 minutes, against a theoretical target of 10 minutes, indicating growing network congestion before this adjustment.

This algorithmic mechanism aims to maintain network stability despite fluctuations in hashrate. When difficulty drops, it means computing power available has significantly decreased. Several key elements confirm this phenomenon :

• The adjustment block : 935,429, with the next adjustment expected around February 20 ;
• The measured variation : -11.16 %, compared to +1.65 % at the previous adjustment ;
• CoinWarz data : difficulty recalibrated to 125.86 T, significantly down from the January peak ;
• The next forecast : +5.63 %, if the hashrate stabilizes.

A difficulty drop of such magnitude has not occurred since sanctions were imposed on Chinese mining specialists nearly five years ago.

This difficulty drop marks an important technical turning point, signaling a sudden protocol adaptation to more complex mining conditions caused by a tangible reduction in computing power deployed on the network.

Turbulence in the Mining Sector

This drop in difficulty is not explained solely by an algorithmic adjustment. Several current events have strained the infrastructure of mining companies in recent weeks.

In January, winter storm Fern swept across the United States, causing massive power outages in 34 states. Mining facilities were forced to drastically reduce their energy consumption. Foundry USA briefly lost nearly 60% of its hashing power, dropping from nearly 400 EH/s to about 198 EH/s, illustrating the tangible impact of extreme weather conditions on network security.

Added to these disruptions is a more worrying industry dynamic. According to collected data, the network’s total hashrate fell to its lowest level in four months, while mining company margins shrink and some operators redirect their resources toward other digital activities like AI data centers.

The bear market, the drop in BTC price—from over $125,000 to around $60,000 before a rebound—and strong compression of hash price have forced less efficient actors to shut down machines that have become unprofitable.