Bitcoin mining difficulty sees negative year-over-year growth for only the second time in history

Odaily Planet Daily News Bitcoin mining difficulty has dropped to 126.23 T, down about 14% from its peak in January this year, and down about 1.1% year-over-year—marking only the second time in Bitcoin network history that difficulty has seen negative annual growth. This difficulty reduction is primarily driven by weak mining economics: falling Bitcoin prices, persistently compressed revenue, and the diversion of capital and electricity resources toward AI and high-performance computing sectors, all of which have collectively constrained hash rate expansion. Additionally, power curtailment in Texas and operational disruptions at other mining sites have also contributed.

Although the difficulty decline has eased some competitive pressure for miners still in operation, there has been no significant improvement on the revenue side. The hash price currently stands at $31.7/PH/day, while forward market data shows the average expectation through December is only $31.85, indicating limited room for miner revenue recovery within the year.