Bitcoin mining difficulty has seen its biggest drop since 2021.

Significant Decline in Bitcoin Mining

Bitcoin mining difficulty has decreased by 11%, marking the largest decline seen since 2021. This situation is attributed to severe winter storms in the U.S. and striking price drops.

Miners are facing a tough period as their earnings per Bitcoin have halved from $70 per petahash to $35. This significant drop threatens miners' profit margins.

This decline in mining difficulty may serve as an automatic correction mechanism that has the potential to increase profitability for the remaining miners. At the same time, it is interpreted as a precursor to a capitulation phase for the market.