Bitcoin Mining Sees First Difficulty Drop in Four Months Amid Tight Profit Margins

First Difficulty Drop in Four Months

• Bitcoin mining difficulty decreased by 2.12% at block height 880,992.

• The difficulty level fell from 110.45 trillion to 108.11 trillion, marking the first decline since September.

• Hashprice (revenue miners earn per unit of hashpower) rose slightly to $59/PH/s following the adjustment.

The drop indicates reduced network competition or slower computational power growth.

Before this adjustment, Bitcoin’s difficulty had risen eight consecutive times since late September.

Over that period, the average hashrate surged from 659 EH/s to 791 EH/s, equating to powering ~500,000 Antminer S21 Pro units.

Institutional Mining Trends

Institutional miners have slowed hashrate expansions in early 2025, likely due to market pressures.

Public mining companies captured 35% of total Bitcoin rewards in December, but declining hashprices forced less efficient operators to unplug.

Bitcoin’s price surged to $109,000 last week but fell to $100,000 on Monday, contributing to hashprice fluctuations.

Profitability Challenges

At the current hashprice of $59/PH/s, Bitmain’s Antminer S19 Pro generates revenue of $0.082/kWh.

Miners paying more than $0.08 per kWh for electricity risk operating at a loss, reflecting tight profitability margins.