Bitcoin’s mining difficulty has decreased for the first time since September 2024, coinciding with the leading asset’s price dropping below $100,000. According to CloverPool data, the difficulty level fell by 2.12% at block height 880,992 on January 27, halting an eight-cycle streak of steady increases. This adjustment reduced the difficulty to 108.11 trillion from its previous record of 110.45 trillion.
Mining difficulty is a crucial measure for validating new blocks on the Bitcoin network. The system automatically adjusts this difficulty approximately every two weeks, or after 2,016 blocks, to maintain a consistent block discovery time of 10 minutes. This mechanism ensures network stability regardless of changes in miner activity. Difficulty increases when active miners grow, requiring more computational power to validate transactions. Conversely, if miner participation decreases, the difficulty level is reduced to balance the network load. This recent decline indicates a modest reduction in overall network activity or computational power among Bitcoin miners.
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