Extreme cold in the US affects Bitcoin network difficulty. Learn how US miners face profitability challenges and how the network difficulty decreases.
A polar cold wave in the southern US and rising energy prices in January caused Bitcoin miners in the country to face profitability challenges. As a result, the mining difficulty for Bitcoin decreased for the first time since September 2024. According to Luxor Mining Company, the extreme cold led to an increased demand for natural gas and decreased efficiency of renewable energy sources, which raised electricity costs. With 36% of the global hash rate, the US has the largest share in Bitcoin mining, with Texas alone holding 17% of this share. Analysts at Luxor believe that as temperatures normalize, the network difficulty will return to its usual trend.
