Bitcoin’s mining difficulty fell by around 7.7% at the latest adjustment on March 20 to 133.79 trillion at block 941,472, the sharpest drop since February, according to CoinWarz data.

The latest move takes difficulty down from around 145 trillion in mid-March and roughly 148 trillion at the start of the year. A lower difficulty means it takes less computational work to earn the same block reward, slightly improving revenue per unit of hashrate for firms that stay online.

The adjustment followed slower-than-target block production over the prior 2,016 blocks. CloverPool data showed average block times at about 12 minutes 36 seconds, well above Bitcoin’s 10-minute target, forcing the network to recalibrate lower.

In February, difficulty dropped sharply after weather-related disruptions in the United States temporarily knocked large American mining facilities offline, and it later rebounded by about 15% as hashrate returned to the network once power conditions normalized. 

Bitcoin difficulty measures how hard it is for miners to find a valid hash for the next block and is automatically adjusted to keep issuance steady at one block every 10 minutes.

When more computing power, or hashrate, joins the network, difficulty rises to prevent blocks from being mined too quickly, while a decline in hashrate triggers a lower difficulty, making it easier for remaining miners to earn rewards. 

The next difficulty adjustment is currently estimated for April 3, though that projection changes with each new block.

Miners pivot to AI as power costs bite

The difficulty reset also comes as several listed miners push further into AI and high-performance computing infrastructure in search of steadier returns on power and data-center capacity.

Last week, crypto trader Ran Neuner argued AI had become Bitcoin mining’s biggest competitor as both industries compete for electricity, even going as far as to say that “AI has killed Bitcoin forever.” 

Bitcoin 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 shut 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 latest weekly update on March 21, it confirmed that its BTC holdings remained at zero.