Bitcoin Mining Difficulty Drops for First Time in Four Months Due to Severe Cold Weather in the U.S.

Rising electricity prices have led to a downward adjustment in bitcoin mining difficulty for the first time since the end of September 2024, due to a cold snap in the United States. The U.S. accounts for 36 percent of the world's bitcoin computing power, with Texas contributing nearly half, according to bitcoin mining company Luxor.The mining difficulty was adjusted downward on Jan. 27 after a polar cold snap in January drove up the cost of electricity in the U.S., which dented the profitability of mining companies. Mining difficulty had fallen only twice in the previous six months, and Luxor expects arithmetic power to gradually return to stability as temperatures warm up. In addition, some U.S. mining companies, such as Riot Platforms, are planning to shift some of their arithmetic power to AI and high-performance computing business to reduce the risk of market volatility.