Bitcoin Network Experiences Slight Difficulty Decrease in 2026's First Adjustment

Bitcoin's mining difficulty has recently decreased in the first adjustment of 2026, providing a temporary break for miners after a year filled with fierce competition and reduced profit margins.

Key Takeaways:

Bitcoin mining difficulty has slightly decreased in the initial adjustment of 2026.
Current faster block completions indicate a likely difficulty increase later this month.
Mining profitability still faces significant challenges despite this brief relief period.

The adjustment, which was finalized on Thursday, lowered the difficulty level to 146.4 trillion, reflecting subtle changes in network dynamics as the new year begins.

Bitcoin Network Difficulty Dips Slightly After 2026’s First Adjustment

Upcoming Difficulty Increase Anticipated Due to Faster Block Times

Mining difficulty quantifies how challenging it is to add a new block to Bitcoin's blockchain and is recalibrated approximately every two weeks to maintain block production at the targeted 10-minute interval.

During the adjustment, average block times were running at approximately 9.88 minutes, slightly quicker than the protocol's desired target time.

Consequently, the forthcoming recalibration is expected to reverse this trend. According to estimates from CoinWarz, the next adjustment on January 22 is projected to raise the difficulty to around 148.2 trillion.

Despite this recent decline, Bitcoin’s mining difficulty remains at historically high levels. The metric experienced consistent growth throughout 2025, reaching peak levels before easing towards the end of the year.

Currently, the difficulty remains below the all-time high of about 155.9 trillion established in November; however, competition remains fierce among miners.

This elevated difficulty reflects the pressures faced by the mining sector after a challenging 2025, where miners contended with what many called the toughest profit environment on record. Factors such as the April 2024 halving, which reduced block rewards by 50%, and worsening macroeconomic conditions contributed to this stress.

The pressure intensified during the cryptocurrency market downturn that started late last year.

Profitability metrics highlight the impact of these pressures. The miner hash price, which measures expected revenue per unit of computing power, fell below breakeven levels in November.

Data from the industry indicates that this price dropped below $35 per petahash per second per day, significantly lower than the approximately $40 threshold many miners consider necessary for sustainable operations.

Additionally, external elements worsened the situation. New tariffs introduced in the United States during President Donald Trump's administration raised concerns over the supply chains for mining equipment, while a sharp market sell-off in October led to a broader decline across the crypto sector.

Bitcoin's price saw a drop of more than 30% in November, briefly plummeting to just above $80,000.

Debunking the Myths Surrounding Bitcoin Mining's Energy Consumption

Contrary to common concerns, a study by independent researcher Daniel Batten claims that Bitcoin mining can enhance electrical grids and even reduce consumer electricity costs rather than burden power systems.

Batten’s analysis challenges widespread assertions that mining disrupts grids or elevates energy prices, using peer-reviewed research and operational data to demonstrate that the industry's adaptable energy consumption can provide tangible system benefits.

In response to growing challenges within the mining sector, Bitmain has been significantly lowering prices across various generations of Bitcoin mining hardware. Recent promotional campaigns and internal pricing lists shared with customers reveal this trend.

One specific promotion dated December 23 offered a package of four S19 XP+ Hydro units coupled with an ANTRACK V2 container, suggesting an effective price of around $4 per terahash for the 19 J/TH machines.