- Bitcoin mining difficulty drops significantly amid price and operational challenges.
- Foundry USA experiences severe hashrate decline during Winter Storm Fern.
- Record-low hashprices challenge miners’ financial sustainability.
Bitcoin’s mining difficulty decreased by 11.16% at block height 935,424, marking the largest drop since China’s 2021 ban.
This significant adjustment reflects the current challenges within the crypto market, influenced by declining hashrates and falling Bitcoin prices.
Recent Adjustments in Mining Difficulty
The recent 11.16% drop in Bitcoin’s mining difficulty has drawn attention as the most significant adjustment since China’s 2021 mining ban. The change occurred at block height 935,424, reflecting a substantial response to ongoing market conditions.
The adjustment follows a 20% hashrate decline over the past month. This shift stems from Bitcoin’s price falling over 45-50% and external factors like U.S. Winter Storm Fern, which disrupted mining operations and power supplies.
Operational Impact on Miners
The impact of the difficulty adjustment affects miners significantly, with many facing financial strain. Foundry USA, a leading mining pool, experienced a sharp 60% drop in hashrate during the storm but later managed a substantial recovery.
Financial implications include record-low hashprices ranging between $33.31 and $34.91 per PH/s/day. These figures are below breakeven for many, posing a challenge to ongoing mining activities and profitability.
Market Reaction and Historical Context
Bitcoin’s market drop influences operation decisions, as posited by Ben Harper, Luxor’s Director of Derivatives, who highlighted the $40/PH/s/day threshold for assessing operational viability.
“The $40/PH/s/day level is widely seen as the threshold at which miners must decide whether to keep machines running.” – Ben Harper, Director of Derivatives, Luxor
Mononaut, Bitcoin Developer, described this drop as the 10th largest negative percentage adjustment in Bitcoin history.
Historical trends, such as China’s 2021 mining ban, have shown that significant difficulty drops lead to broader market implications. Projections suggest the next adjustment around February 20, 2026, with a potential 5.63%-10.29% increase in difficulty.
Additional References
For further insights, visit KuCoin Official Account on X.com and TradingView Profile on X.com.
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