Bitcoin Mining Difficulty Drops 11.16% Amid Hashrate Decline

TLDR

• Mining difficulty dropped 11.16%, reaching 125.86 trillion.
• Foundry USA lost 60% of its hashrate during the storm.
• Hashprice hit a record low of $33.31 per petahash.

Bitcoin mining difficulty has experienced a significant drop of 11.16%, reaching 125.86 trillion at block 935,429. This marks the largest single negative adjustment since China imposed a mining ban in 2021. The drop is primarily attributed to a decline in the network hashrate by approximately 20%. Factors contributing to this decline include poor economics, with hashprice hitting a record low of $33.31 per petahash per second per day, along with disruptions caused by Winter Storm Fern in the United States.

Foundry USA, the leading Bitcoin mining pool with a 29.47% share of the network, experienced a substantial loss of approximately 60% of its hashrate. Initially, its hashrate fell from around 400 exahashes per second (EH/s) to 198 EH/s due to the storm. However, it has since recovered to 354 EH/s. Luxor Technology, through its Hashrate Index, reported hashprice lows and a weekly hashrate decline of 11% from the October peaks of over 1.1 zettahashes per second (ZH/s).

Historical Comparison with China’s Mining Ban Effect

Bitcoin developer Mononaut described the latest adjustment as the 10th largest negative adjustment in history. For comparison, the mining ban in China during May to July 2021 resulted in drops ranging from 12.6% to 27.9%. This adjustment, like the one now, led to block times exceeding 10 minutes. The period also saw prolonged hashrate strain and negative market signals, contributing to a notable drop in Bitcoin prices from over $125,000 to around $60,000.

Currently, the affected network hashrate is around a four-month low, measuring 826 EH/s on January 30 and slightly improving to 927 EH/s after the recent adjustment. This situation affects primarily Bitcoin, with no mentions of other cryptocurrencies like Ethereum or alternative coins. The focus remains on the Bitcoin network’s performance as it grapples with these changes.

Role of Weather and Economics in Hashrate Dynamics

The recent adjustment showcases the impact of external factors such as weather and economic conditions on Bitcoin mining. Winter Storm Fern significantly disrupted power supplies, leading to notable hashrate drops. The economic aspect is equally influential, with hashprice valued at $33.31, complicating miners’ profitability. Notably, despite these challenges, no official statements or reactions from key opinion leaders or cryptocurrency officials have been documented.

Data from Hashrate Index provides insights into Bitcoin network data, reflecting the current challenges miners face. Hashrate Index suggests that the network’s current conditions are due to both external disruptions and inherent economic difficulties. These elements together contribute to the ongoing volatility within the Bitcoin mining landscape.

Current Sentiment and Absence of Regulatory Updates

No significant community or developer sentiment, GitHub activity, or roadmap updates have been observed in response to these recent developments. Additionally, there have been no regulatory or institutional updates from agencies such as the SEC, CFTC, or ESMA. This lack of official commentary leaves the space open to speculations from market participants about the near-term implications for the network.

Information from sources like ForkLog highlights the ongoing market trends and crypto events related to this recent adjustment, although official comments and reactions remain sparse. Market participants continue to monitor the situation closely as the network navigates these changes.