Bitcoin mining difficulty has dropped by 5% — hash rate is recovering, but profitability is under threat
After another automatic recalculation, the mining difficulty of the first cryptocurrency decreased by 5%, reaching 127.17 T. This significant decline reflects the current network dynamics, where miners have temporarily reduced activity, leading to a correction of the metric.
In mid-June, difficulty had already dropped by 10.09%, but then recovered by 7.15%. The current decline is the second major drop in recent weeks, indicating ongoing volatility in the mining sector. At the beginning of the year, the figure stood at 148.26 T, which is 17% higher than the current level, and compared to the all-time high of 155.27 T recorded in October 2025, the gap has reached 22%.
Hashrate and Block Interval: Signs of Stabilization
The average network hashrate at the time of analysis has recovered to levels above 1 ZH/s, and the block interval has shortened to nine minutes. This suggests that miners are beginning to return to work after a period of decline. Forecasts do not anticipate a notable adjustment of the metric in the near future, which may indicate a temporary equilibrium.
The smoothed seven-day moving average hashrate, according to Glassnode, stands at 864.4 EH/s. At its peak in October, the network's computing power reached 1.15 ZH/s, but has since shown a steady downward trend, confirming pressure on mining infrastructure.
Hashprice and Profitability: A Bounce, But No Breakthrough
Against the backdrop of falling difficulty, the hashprice has risen from ~$30 per PH/s per day to ~$32. This is a slight improvement, but the mining profitability metric has only rebounded from the local lows of the beginning of the month, which were around $27 per PH/s per day. The key breakeven threshold is at $40 per PH/s, and current values are significantly below this level.
Miners continue to face pressure on profitability, accelerating their shift to the artificial intelligence sector. In my assessment, if difficulty and hashrate do not stabilize at higher levels, many market participants will be forced to diversify their operations to compensate for the decline in profits from bitcoin mining. This could lead to a further reduction in hashrate in the medium term if the price of bitcoin does not show confident growth.