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

Odaily Planet Daily News: Bitcoin mining difficulty has dropped to 126.23 T, down approximately 14% from its peak in January this year, and down about 1.1% year-over-year, marking the second time in Bitcoin network history that difficulty has seen negative annual growth. This difficulty adjustment is mainly driven by weak mining economics: declining Bitcoin prices, sustained revenue compression, coupled with the diversion of capital and power resources toward AI and high-performance computing sectors, have collectively constrained hash rate expansion. Additionally, power restrictions 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. 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.