Bitcoin Mining Difficulty Faces Largest Reduction Since 2021 Amid Hashrate Collapse
Bitcoin’s mining difficulty is projected to decrease by approximately 9% within the next five days, marking the steepest single adjustment since China’s mining ban in July 2021. This drop comes as the network’s hashrate—the total computational power securing Bitcoin—plummeted nearly 30% in two weeks to under 700 exahashes per second (EH/s), straining miner profitability during peak summer energy demand.
Key Drivers of the Adjustment
Revenue Pressure: Miner income per exahash (hashprice) fell to $51.90, below breakeven for many operations. This forced older or less efficient machines offline, according to Nishant Sharma of BlocksBridge Consulting.
Seasonal Shutdowns: Extreme heatwaves in Texas, a major mining hub, temporarily idled operations to relieve stressed power grids. Similar patterns have historically occurred during Northern Hemisphere summers.
Post-Halving Pressures: The April 2024 Bitcoin halving reduced block rewards, compounding profitability challenges for miners.
Market Implications
The downward adjustment will ease mining conditions, significantly boosting revenue per unit of computational power. Miners retaining active operations could see immediate relief, potentially slowing the recent exodus of machines from the network.
Industry Milestone
Amid these market shifts, CleanSpark announced it achieved 50 EH/s mining capacity on June 24, hitting its mid-year target. The milestone demonstrates continued scaling despite sector headwinds.
Regulatory Context
Norway separately revealed plans to ban new proof-of-work mining data centers starting autumn 2025, citing excessive energy consumption. Minister for Digitalization Karianne Tung stated the move aims to preserve electricity for “more productive industries.”
This difficulty reset offers temporary respite for miners navigating volatile revenue cycles and regulatory uncertainty. The network’s self-correcting mechanism—designed to maintain 10-minute block intervals—continues functioning amid fluctuating participation.
