Bitcoin Mining Difficulty Drops As Hashrate Soars

Key Takeaways

• Bitcoin mining difficulty dropped 2.7% to 146.7 trillion on Oct. 18th, 2025.

• Network hashrate hit an all-time high of over 1.2 trillion hashes per second, remaining elevated.

• The next difficulty adjustment is expected to push difficulty up to 156.9 trillion on Oct. 29th, 2025.

• Miners are diversifying into AI and HPC infrastructure to offset declining crypto revenues.

• U.S. trade tariffs and geopolitical tensions are worsening supply chain issues and increasing hardware costs.

Bitcoin Mining Difficulty Dips Amid Record Hashrate

On October 18th, 2025, the Bitcoin mining difficulty dropped to 146.7 trillion, down roughly 2.7% from its previous all-time high of 150.8 trillion, according to data from CoinWarz.

Source: CoinWarz

This drop means that, for now at least, miners require slightly less computational effort to solve the cryptographic puzzles that validate Bitcoin transactions and add new blocks to the blockchain.

Yet, this relief may be short-lived.

Miners Face Increasing Pressure Despite Difficulty Drop

While a temporary reduction in mining difficulty can ease short-term operational strain, the surging hashrate paints a different picture.

An elevated hashrate indicates that more miners are joining the network, making it more competitive and less profitable for individual mining operations.

Cost Of Mining Continues To Rise

As more computing power floods the network, Bitcoin mining becomes more resource-intensive. This not only increases electricity costs, but also hardware wear and tear, both of which squeeze profit margins for miners.

Compounding this is the Bitcoin halving event earlier in 2024, which slashed block rewards, the primary revenue source for many miners, from 6.25 BTC to 3.125 BTC.

Mining Industry Shifts Toward Diversification

Faced with declining margins, many major mining companies are diversifying into AI data centers and other forms of high-performance computing (HPC).

Notable pivots include:

• Core Scientific

• Hut 8

• Iris Energy (IREN)

These companies have begun repurposing their mining infrastructure to support AI workloads in a bid to reduce dependence on volatile crypto markets.

Hashrate Reaches All-Time High

Despite the dip in mining difficulty, Bitcoin’s network hashrate, the total computing power used to secure the network, hit a record high of 1.2 trillion hashes per second earlier this week. The hashrate remains elevated, suggesting growing interest and competition among miners.

According to CryptoQuant, the next difficulty adjustment is projected for October 29th, 2025, where difficulty is expected to rise sharply to 156.9 trillion, further increasing the cost of mining.

Bitcoin Network Hashrate Hit An ATH Of Over 1.2T Hashes Per Second

Source: CryptoQuant

Energy & Trade Policies Create New Friction

The shift into AI doesn’t come without its challenges. Both Bitcoin miners and AI firms require vast amounts of cheap energy, often competing for the same limited resources.

This has created infrastructure bottlenecks and regulatory tension in several jurisdictions.

Supply Chain Challenges & Trade Tariffs

Adding to the complexity are geopolitical factors. Trade tensions between the United States and China have intensified under the ongoing influence of President Donald Trump’s tariffs, which have increased the cost of importing mining hardware.

Key impacts of tariffs on Bitcoin mining:

• Increased hardware costs for U.S.-based miners

• Export restrictions on chips and processors

• Supply chain delays for mining rigs and related components

As a result, miners operating in tariff-free regions enjoy a competitive edge, while others struggle to maintain profitability.

FAQ

What is Bitcoin mining?

Bitcoin mining is the process of validating transactions on the Bitcoin network by solving complex cryptographic puzzles. Successful miners are rewarded with newly minted BTC and transaction fees.

What is mining difficulty?

Mining difficulty measures how hard it is to find a new block. It adjusts approximately every two weeks based on the network’s total hashrate to ensure consistent block production (roughly every 10 minutes).

Why did Bitcoin mining difficulty decrease?

Difficulty decreased due to a temporary reduction in network hashrate, possibly from miners going offline or rebalancing resources. However, the hashrate quickly rebounded, indicating strong participation.

How do trade tariffs affect Bitcoin mining?

Trade tariffs increase the cost of importing mining equipment, especially in the U.S., making operations more expensive and potentially less profitable for American miners.

Are Bitcoin miners switching to other industries?

Yes, some Bitcoin mining companies are diversifying into AI data centers and HPC services to generate more stable revenue streams outside of cryptocurrency markets.