Bitcoin mining difficulty decreases by 1.20%, reopening the profitability window for miners

Bitcoin mining difficulty was adjusted today at 16:05, decreasing by 1.20% to 146.47 T. This is a relatively moderate adjustment, reflecting the real-time changes in the total network hash rate. Interestingly, this difficulty adjustment occurred against the backdrop of a declining BTC price, which warrants a deeper understanding of the underlying logic.

Mechanism of Mining Difficulty Adjustment

Why does difficulty decrease

Bitcoin’s mining difficulty automatically adjusts every 2016 blocks (approximately two weeks) to maintain a steady block generation time of about 10 minutes. When the total network hash rate decreases, difficulty is adjusted downward accordingly; when it increases, difficulty is adjusted upward.

The recent decrease of 1.20% to 146.47 T indicates that the average network hash rate over the past period has declined compared to the previous difficulty cycle. According to the latest data, the average hash rate over the past seven days is 1.06 ZH/s. From the data, this adjustment is relatively mild, suggesting that there hasn’t been a significant withdrawal of hash power.

What does difficulty adjustment mean for miners

For miners, a difficulty decrease is generally good news. Under the same hardware and electricity costs, a lower difficulty means:

• Higher probability of mining a block
• Increased rewards per unit of hash rate
• Enhanced profitability of mining rigs

Considering BTC has fallen 2.65% in the past 24 hours (current price $90,385.34), this difficulty adjustment acts as a buffer, helping miners maintain relatively stable returns.

Market Context: Price and Hash Rate Dynamics

From these figures, although BTC has dipped in the short term, it has still increased by 3.16% over the past week. This indicates an overall upward market trend, with recent adjustments. In this context, some miners may have reduced their investments or paused some equipment, leading to a slight decline in total network hash rate, which in turn triggered the difficulty adjustment.

Deeper Reflection

Miner Behavior Signals

A 1.20% difficulty decrease, while modest, reflects miners’ real-time assessment of the current market. If miners remain optimistic about BTC’s prospects, they tend to continue investing hash power; if not, they may reduce their input. This adjustment suggests that, at least in the short term, some miners are weighing costs and benefits and choosing to hold back or slightly cut back.

Relationship with Circulating Supply

BTC’s current circulating supply is 19,973,081 coins, accounting for 95.11% of the total supply. The difficulty adjustment does not change BTC’s supply logic but influences the rate of new coin issuance and miners’ enthusiasm. A difficulty decrease might attract some miners who previously exited to re-enter, or motivate existing miners to increase their investments.

What to Watch Next

Based on the latest news, this difficulty adjustment should improve miners’ profitability. If BTC price stabilizes or continues to rise, it could attract more hash power, pushing difficulty higher in the next cycle. Conversely, if prices remain under pressure, hash rate may decline further.

Summary

Bitcoin mining difficulty decreased by 1.20% to 146.47 T, signaling a relatively moderate but noteworthy change. In the context of a short-term price decline, this adjustment provides a buffer for miners, improving their profitability. Over a broader cycle, it reflects the dynamic balance among miners, price, and hash rate in the market. The key upcoming factors are whether BTC price can stabilize and whether total network hash rate will rebound after the difficulty adjustment.