The weather in the United States has caused difficulty in Bitcoin (BTC ($99,126.89)) mining to slip to 108.11 trillion at block 881,845.
This is the first time this metric has reached this high in five months. Bitcoin mining firm Luxor explained the situation.
According to the firm, the cold weather led to higher demand for natural gas and decreased efficiency from renewable energy sources
Winter Effect on Bitcoin Mining Activities
Bitcoin mining difficulty is generally finding the right hash for the next block.
Usually, the number of miners within the network determines whether this metric will increase or decrease.
These miners must expend energy to achieve Bitcoin mining, which amounts to a significant percentage of the funds spent during the process.
Unfortunately for miners, last month’s cold weather in the US increased energy prices.
Several mining firms struggled to stay profitable as a result of this condition. Ordinarily, Bitcoin mining difficulty adjusts every fortnight based on the miners’ performance.
The goal is to keep the time between blocks around ten minutes. However, this latest adjustment tilted downwards.
In the last six months, mining difficulty has managed to stay steady and, sometimes, increase at each two-week interval. However, there were two occasions when the difficulty of Bitcoin mining fell.
The first was on September 25, 2024, after the metric had hit an All-time-high (ATH) earlier in the same month. The second drop came on January 27, 2025.
Current Bitcoin Metrics: Hashrate Outlook
On-chain data suggests that miner revenue per terahash decreased slightly last month compared to December.
This means that many mining companies had difficulty mining Bitcoin for a profit. The US is responsible for 36% of the global Bitcoin mining hashrate.
This is a metric that represents the computational power to make sure the network is secured. Out of this value, only Texas accounts for 17%.
About a week ago, the Bitcoin Hashrate stood at 730.2 EH/s. This metric gives miners confidence in Bitcoin’s profitable and long-term prospects in the presence of market fluctuations.
Whenever there is a rise in hashrate, it implies that the security of the Bitcoin network is at a new high. This makes the blockchain more resistant to possible attacks in the long run.
Implications for Bitcoin Price
Market observers and analysts have been monitoring the price of Bitcoin. Two noticeable trends to note include the limited price action and lower volatility.
In the meantime, BTC price was trading at $101,088.37, marking a 0.86% drop in 24 hours. There is a weakened demand for the coin amongst investors, as showcased by the 26% fall in trading volume.
With the uncertainty in the difficulty of Bitcoin mining and hashrate, the price of BTC may keep failing and slip below $100,000.
This contradicts the positive predictions issued by analysts that suggest a $120,000 price target in the short term.
Despite this trend, Bitcoin still has the prospect of a rally, especially with the US government in aiding the emergence of new policies.
Some other countries are also aligning themselves towards a pro-crypto Bitcoin stance. This features the establishment of a strategic Bitcoin reserve.
In the long run, these may add up as catalysts for a Bitcoin price rally
The post Why Bitcoin Mining Difficulty Slipped First Time In 5 Months appeared first on The Coin Republic.
