Amid January's cold weather in the U.S., the Bitcoin mining difficulty decreased for the first time in four months. The Arctic cyclone that hit the southern states led to increased electricity prices, complicating the operations of local miners.
Bitcoin mining difficulty is adjusted every two weeks based on miners' activity to maintain the interval between blocks at roughly ten minutes. On January 27, 2025, there was a decrease in difficulty — the second such instance in the past six months. The previous decrease was recorded on September 25, 2024, after reaching an all-time high.
Bitcoin mining difficulty dynamics throughout the year. Source: Blockchain.com
According to data from the mining company Luxor, the recent adjustment was due to extreme weather conditions in the U.S. The abrupt cold snap increased the demand for natural gas, while the efficiency of renewable energy sources declined. This led to higher electricity costs, adversely affecting mining profitability.
Data from The Block confirms a drop in miners' revenue per terahash in January compared to December. The U.S. accounts for 36% of the global Bitcoin hash rate capacity, with Texas alone contributing about 17%.
The largest U.S. mining company, Riot Platforms, operating in Rockdale, Texas, announced plans for diversification. Some of its computing power will be allocated to processing tasks in artificial intelligence and high-performance computing.
Luxor analysts believe that after the Arctic conditions subside, mining difficulty will return to its usual trajectory. “Cold weather in the U.S. is a temporary phenomenon, and we expect hash rate stability to improve as temperatures normalize,” the company's experts noted.