Bitcoin's mining difficulty is set to experience a historic annual decline, dropping from 148.3 trillion at the end of 2025 to 126.2 trillion, a situation not seen since the network's inception 17 years ago.
While the year is not over and several difficulty adjustments are still expected before December 31, current trends point to miners shutting down equipment due to compressed margins. Bitcoin’s price has fallen by 26% this year, slashing mining revenue by half and forcing many to operate at a loss.
According to onchainmind, the average cost to mine one bitcoin is about $76,100, yet the market price hovers near $65,000. External factors like February's Superstorm Fern and the summer heat in Texas have exacerbated the issue, causing additional shutdowns to avoid soaring electricity costs. This has led to a decline in the network's total hash rate.
Amid this, the market displays an unusual dynamic: traditional mining struggles financially, yet mining-related stocks are rising due to AI-driven optimism, and bullish signals for bitcoin's price are emerging.
