Bitcoin Mining Difficulty Drops 11% as Crypto Market Slumps

The Bitcoin network’s mining difficulty has once again moved in a volatile direction, highlighting how external shocks—from extreme weather to regulatory pressure—continue to ripple through the ecosystem. In the most recent adjustment window, the metric dropped about 11.16% in the last 24 hours, marking the steepest one-day decline since China intensified its 2021 crackdown on crypto mining. With the adjustment taking effect at block 935,429, the difficulty sits around 125.86 terahashes and the network’s average block time hovers near 9.47 minutes, just shy of the 10-minute target. Industry observers note that the next adjustment, set for February 20, is forecast to rebound by roughly 5.63% to about 132.96 T, according to CoinWarz data. The sequence underscores how sensitive the network remains to a mix of weather-related outages, shifting energy economics, and ongoing structural changes within the mining sector.

Key takeaways

• Bitcoin mining difficulty fell by about 11.16% in the last 24 hours, the largest one-day drop since the 2021 crackdown in China.
• Current difficulty is 125.86 T at block 935,429, with an average block time near 9.47 minutes, underscoring continued efficiency pressure in the network.
• The next adjustment on February 20 is projected to rise about 5.63% to roughly 132.96 T, signaling a partial recovery after the recent pullback.
• A severe winter storm in January—Winter Storm Fern—disrupted power grids across 34 states and trimmed US miner hashrate, illustrating how weather can translate into measurable network effects.
• Foundry USA, the world’s largest mining pool by hash rate, briefly saw its capacity cut by around 60% during the storm, shrinking from about 400 EH/s to 198 EH/s before recovering to above 354 EH/s and maintaining a sizable market share.
• January’s broader picture showed the Bitcoin network hashrate retreating to a four-month low as miners reallocate to compute workloads beyond traditional mining.

Tickers mentioned: $BTC

Market context: The ongoing mix of supply-side disruption (weather-related outages), regulatory pressures, and energy-market dynamics continues to shape miner behavior and network security, with a notable tilt toward more flexible, high-availability compute deployments beyond pure traditional mining.

Why it matters

Bitcoin’s security and block production depend on the global distribution of mining power. The recent difficulty drop—driven in part by infrastructure outages tied to Winter Storm Fern—signals how external shocks can temporarily reduce the aggregate hashing power securing the network. The subsequent projected rebound in the next adjustment suggests a partial normalization as operations restart and energy systems stabilize. The episodes also highlight a broader resilience dynamic: as traditional mining pools feel weather- and grid-related constraints, some miners have pivoted toward diversified compute applications, including AI data centers and other high-performance computing tasks, which can alter the geographic and economic makeup of hashrate distribution (CRYPTO: BTC).

The storm’s impact underscores the fragility of mining-dependent infrastructure. The disruption forced US-based miners to curb energy usage and pause operations, translating into a lower total network hashrate and a temporary easing of the computational pressure that underpins Bitcoin’s protocol security. Foundry USA—widely recognized as the largest pool by hashrate—reported a dramatic swing, with hashing power plummeting from nearly 400 EH/s to about 198 EH/s in the storm’s wake, just as the grid faced outages across broad swaths of the country. The fallout was nonetheless transitively mitigated as operations regained traction and hashing power rebounded in the days that followed, reflecting a resilient but stressed sector laced with concentrated capacity.

Even as the storm receded, the broader January data painted a picture of a network navigating a quieter, more cost-conscious cycle. The total Bitcoin hashrate declined to a four-month low, a reflection of both macro crypto market headwinds and miners’ strategic realignment toward compute tasks that can leverage surplus energy during off-peak periods. This pattern aligns with a wider industry trend: operators are increasingly balancing long-term capital commitments with shorter-term flexibility to adapt to energy prices, grid reliability and shifting demand profiles for computing power beyond proof-of-work competition alone.

Why it matters

The sequence of events surrounding mining difficulty and hashrate carries implications for both the security architecture and the economics of running a mining operation. A lower difficulty can ease block production temporarily, potentially affecting miners’ revenue dynamics, especially for those with higher energy costs or less efficient hardware. Conversely, the forecasted rebound in the next adjustment hints at a prompt re-consolidation of hashrate, which could re-tighten margins for smaller operators and increase the concentration of power among larger pools with greater resilience to weather-related shocks.

From a market perspective, the volatility in hashrate can coincide with price fluctuations, adding another layer to the already complex relationship between mining activity and Bitcoin’s spot market. The January and February patterns suggest a sector that remains highly reactive to externalities—weather, policy signals, and the evolving balance of energy economics—while continuing to innovate around operational efficiency and diversification of compute workloads. Those dynamics will influence how quickly the network can absorb future disruptions and how miners price risk in a landscape where energy costs, hardware depreciation, and regulatory risk remain in sharp relief.

What to watch next

• February 20: The next mining-difficulty adjustment and the degree of rebound toward 132.96 T.
• Restart and stabilization of Foundry USA’s hashrate; monitoring for any long-term shifts in pool market shares.
• Any policy or grid reliability developments that could affect U.S. mining operations and energy availability.
• New data on how miners allocate capacity between traditional mining and other compute workloads, including AI data centers.

Sources & verification

• CoinWarz difficulty charts and block data for Bitcoin (CRYPTO: BTC) at block 935,429 and the projected February adjustment.
• AccuWeather reporting on Winter Storm Fern and its impact on regional power infrastructure in the United States.
• Hashrate Index pool-market-share data reflecting Foundry USA’s post-storm recovery and market position.
• Cointelegraph reporting on January’s hashrate declines and the broader context of miner activity during weather events.

Bitcoin mining difficulty, storms and the path to the February adjustment

Bitcoin (CRYPTO: BTC) mining difficulty dipped about 11.16% over the past 24 hours, underscoring how swiftly external conditions can influence the security and economics of the network. The current reading places the difficulty at roughly 125.86 T, with the adjustment taking effect at block 935,429. The network’s average block time sits at about 9.47 minutes, a hair under the 10-minute target that helps maintain predictable issuance and transaction throughput. CoinWarz tracks the data behind the scene, and projections for February 20 show a likely rebound of around 5.63%, lifting the metric toward 132.96 T. This sequence—sharp decline followed by expected recovery—was anticipated by observers who have watched a pattern emerge since the 2021 China crackdown, when mining operations shifted dramatically in response to policy changes and market conditions.

The context for the latest adjustment owes much to a storm season that has repeatedly stressed the Bitcoin network’s fundamentals. Winter Storm Fern swept across much of the United States in January, disrupting electrical infrastructure and forcing curtailment of miner energy use in 34 states across roughly 2,000 square miles. The immediate consequence was a measurable throttling of the network’s total hashrate and a temporary softening of the hash-power centralization that had been building in certain corridors of mining activity. As outages and grid instability mounted, the resilience of large-scale operators—bolstered by diversified energy sourcing and operational cadence—helped the sector rebound once the storm abated.

One consequence of the weather-driven disruption was its impact on the largest mining pool by hashrate: Foundry USA. The bloc of hashing power belonging to this operator was temporarily slashed by around 60%, dropping from near 400 EH/s to about 198 EH/s during the peak of Winter Storm Fern. Hashrate Index corroborates the shift in market dynamics, noting how the pool’s share waxed and waned with the storm’s intensity. In the days that followed, Foundry USA’s hashrate recovered to more than 354 EH/s, renewing its status as a dominant force in the network with a market share hovering around 29.47% at the time of reporting. The broader narrative is that while the storm caused an abrupt pullback, the sector’s capacity to bounce back remained evident as miners reconnected with power sources and recommenced operations.

Beyond the storm, January’s overall momentum pointed to a four-month low in total Bitcoin hashrate, signaling a period of caution as miners assess the balance between energy costs, hardware depreciation, and the macro crypto environment. The combination of weather-related outages and market headwinds has prompted a cautious stance among some operators, who are re-evaluating risk profiles and exploring adjacent compute workloads to maximize asset utilization during periods of mining downtime. The result is a nuanced picture: even as the next difficulty adjustment points to a potential rebound, the path forward may involve continued strategic shifts as the industry recalibrates in response to evolving incentives and constraints.

This article was originally published as Bitcoin Mining Difficulty Drops 11% as Crypto Market Slumps on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.