Bitcoin’s mining difficulty fell about 7.7% at the March 20 adjustment to 133.79 trillion at block 941,472, the largest drop since February, according to CoinWarz. The move reduces difficulty from roughly 145 trillion in mid-March and about 148 trillion at the start of the year, meaning it takes less computational work to earn the same block reward and slightly improves revenue per unit of hashrate for miners that remain online.
The adjustment followed slower-than-target block production across the prior 2,016 blocks. CloverPool data recorded average block times near 12 minutes 36 seconds, well above Bitcoin’s 10-minute target, prompting the network to lower difficulty.
In February, difficulty also fell sharply after weather-related disruptions in the United States temporarily took large mining facilities offline; it later rebounded by roughly 15% as hashrate returned once power conditions normalized.
Difficulty measures how hard it is for miners to find a valid hash for the next block and is automatically adjusted to keep issuance near one block every 10 minutes. When more computing power (hashrate) joins the network, difficulty rises to prevent blocks being mined too quickly; a decline in hashrate triggers lower difficulty, making it easier for remaining miners to earn rewards. The next difficulty adjustment is currently estimated for April 3, though that projection shifts with each new block.
Miners pivot to AI as power costs bite
The reset arrives as several publicly listed miners expand into AI and high-performance computing to seek steadier returns on power and data-center capacity. Crypto trader Ran Neuner recently argued that AI has become Bitcoin mining’s biggest competitor for electricity, even saying “AI has killed Bitcoin forever.”
Miners such as Core Scientific, MARA Holdings, Hut 8 and Cipher Mining have begun reallocating capacity or pivoting toward AI workloads, while some operators have reduced hashrate or powered down less efficient rigs as profitability tightens. On Feb. 21, Bitdeer liquidated 943 BTC from reserves and sold newly mined coins, cutting corporate holdings to zero; in its March 21 weekly update it confirmed BTC holdings remained at zero.
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