Bitcoin Mining Difficulty Hits Its Biggest Drop Since 2021 China Ban

Bitcoin mining difficulty plunged 11.16% to 125.86 trillion (T) this week, marking its steepest decline since the 2021 crackdown in China. Mempool developer Mononaut recorded the adjustment. The drop followed severe winter storms across North America and surging energy prices, which forced inefficient operators to power down.

In places such as Texas, some miners participate in demand response programs, voluntarily reducing consumption during peak load periods in exchange for energy credits. The protocol’s difficulty adjustment mechanism keeps block production near 10-minute intervals; when miners go offline, block times slow and the network lowers difficulty to make mining easier for remaining participants.

This 11% contraction is the largest capitulation since July 2021, when a state-mandated ban in China prompted a mass exodus of hashing power. With Bitcoin trading below $70,000, operators running older hardware have become unprofitable as spot power prices spiked, prompting permanent or semi-permanent shutdowns.

United States, Texas

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