Bitcoin Mining Difficulty on Brink of First Annual Net Decline

The Bitcoin mining industry is showing signs of distress as the difficulty drop looms. According to recent data, the bitcoin mining difficulty has been trending down from 148.3 trillion at the end of last year to 126.2 trillion now.

This potential decline would mark the first annual net drop in the network's history, with five automatic difficulty adjustments remaining until year-end. If Bitcoin rebounds and mining equipment comes back online, difficulty at year-end could still exceed 2025 levels.

The strain on the industry stems from worsening profitability. Bitcoin is down 26 percent from the start of the year, and industry revenue has fallen to about half. OnchainMind estimates the current average mining cost per bitcoin at $76,100, while the market price is hovering around $65,000.

Weather factors have added to the pressure. A massive hurricane in February hit the United States, raising power cost burdens, and some companies halted operations of ASIC miners to avoid surging electricity bills. As a result, total network hashrate is about 20 percent below its historical peak.