Bitcoin’s network mining difficulty dropped 11.16% to 125.86 T over the weekend, marking the largest negative adjustment since July 2021.
The difficulty correction follows a sustained decline in network hashrate driven by severe weather conditions in North America and a 20% decline in bitcoin price since the start of the year.
This adjustment represents the 10th largest percentage drop in the cryptocurrency’s history, according to data analyzed by Bitcoin developer Mononaut. The contraction is similar is scope to negative bitcoin adjustment right after the the China Bitcoin mining ban of 2021.
Total network hashrate fell approximately 20% over the past month. Hashrate Index data shows the network plunged 11% in the past week alone to roughly 863 EH/s. This figure sits well below the all-time highs of 1.1 ZH/s recorded in October 2025.
Physical infrastructure constraints catalyzed much of the decline as Winter Storm Fern froze operations across the United States beginning January 26. Miners in the PJM Interconnection and Tennessee Valley Authority (TVA) regions curtailed power usage to stabilize the electrical grid.
PJM reported demand exceeded 130,000 MW for seven consecutive days due to the arctic front. More than 1 million customers lost power during the event, triggering demand response clauses for industrial energy consumers.
Financial pressures exacerbated the physical constraints as Bitcoin prices fell below the $78,000 support level. The market sell-off has compressed miner profit margins, forcing less efficient operators to unplug machines.
Institutional sentiment has shifted alongside the price action. U.S. spot Bitcoin ETFs have turned into net sellers in 2026, reversing the strong inflow trend seen previously.
Macroeconomic factors including elevated Treasury yields and a broad “risk-off” rotation in equities continue to weigh on the sector. These conditions have created a challenging environment for miners facing high energy costs and lower asset prices.
