Bitcoin Difficulty Plunges 11.16% — Biggest Drop Since 2021 China Crackdown
Over the weekend the Bitcoin network recorded an 11.16% drop in mining difficulty, the steepest cut since July 3, 2021 — the date associated with China’s sweeping crackdown on miners and exchanges. That 2021 event triggered a rapid miner exodus and market volatility; this latest reduction similarly signals that overall hash rate has weakened enough for the protocol to compensate by lowering difficulty.
A lower difficulty reduces the computational work needed to find blocks, easing short-term pressure on struggling miners and improving block production consistency. However, the move can also reflect miner capitulation and raises the risk of additional selling as operators cover costs. Traders and infrastructure watchers will be watching subsequent hash rate trends, miner balance sheets, and price action for clues on whether this is a transient reset or the start of broader miner stress.