The difficulty of Bitcoin mining has dropped by 5%: hash rate is recovering, but miners are moving to AI
During the latest algorithm adjustment, the mining difficulty of the first cryptocurrency decreased by 5%, dropping to 127.17 T. This is a significant decline, signaling ongoing volatility in the mining sector.
Recall that in mid-June, difficulty plummeted by 10.09%, after which it recovered by 7.15%. The current drop is another pullback, confirming market instability. Since the beginning of the year, when difficulty stood at 148.26 T, it has decreased by approximately 17%. Compared to the all-time high of 155.27 T recorded in October 2025, the gap has reached 22%.
The average network hashrate, however, shows signs of recovery, rising above the 1 ZH/s mark. The block interval has shortened to nine minutes, indicating partial stabilization. Current forecasts do not suggest any further significant difficulty adjustment.
The smoothed seven-day moving average hashrate, according to Glassnode, stands at 864.4 EH/s. This is significantly lower than the peak value of 1.15 ZH/s reached in October. Since then, the network's computational power has shown a sustained downward trend.
Against the backdrop of falling difficulty, hashprice — a measure of mining profitability — has risen from ~$30 to ~$32 per PH/s per day. This is a slight rebound from the local lows at the beginning of the month around $27 per PH/s, but it is still far from the critical threshold of $40, which is considered the approximate breakeven point for many miners.
In my opinion, the current situation is a classic example of a "bear" cycle, where miners are forced either to shut down outdated equipment or to pivot to more profitable niches, such as AI. The pressure on Bitcoin mining profitability continues to grow, and the accelerated shift of miners into artificial intelligence is not just a trend but a necessary survival measure in the face of declining margins.