Bitcoin Mining Difficulty Drops 7.76% as Miners Face Margin Squeeze

At block 941,472, Bitcoin's mining difficulty fell to 133.79 trillion, down from approximately 145 trillion in mid-March. The adjustment followed a period of slower-than-target block production, with average block times stretching to 12 minutes and 36 seconds, well above the 10-minute target across the prior 2,016 blocks.

Global hashrate retreated to roughly 943 EH/s as several factors converged. Post-halving margin compression continues to squeeze miners operating near breakeven, while elevated energy costs tied to Middle East geopolitical tensions have further eroded profitability. Several major mining firms, including Core Scientific, MARA Holdings, Hut 8, and Bitdeer, are navigating the pressure in different ways.

The difficulty drop mirrors historical "clean-up" phases seen after the 2021 China mining ban and the 2022 bear market, where marginal operators exit and surviving miners benefit from improved economics. For the miners that remain, each unit of computing power now solves blocks more readily, temporarily lifting revenue per hash.

The shift toward AI hosting is accelerating the trend. As crypto trader Ran Neuner noted, "AI has become Bitcoin mining's biggest competitor," with both industries competing for the same electricity supply. Bitdeer, for example, liquidated 943 BTC from its reserves in February and confirmed its corporate Bitcoin holdings had fallen to zero by March 21.

The next difficulty adjustment is estimated for early April 2026, with projections suggesting a further decline of roughly 0.7%. With BTC trading around $70,600, miner profitability will depend on whether prices stabilize or continue to drift lower. The growing pivot from Bitcoin mining to AI data center hosting could reshape the mining landscape through the rest of the year.