Odaily reported that Galaxy Research posted on X that Bitcoin miners have entered a “capitulation phase.” According to the firm, Bitcoin mining difficulty is now down by more than 20% from its historical peak, making it the largest difficulty drawdown since 2021. Mining difficulty is a core network parameter used by Bitcoin to regulate block production, and a sharp decline shows that the network’s hash rate is going through an adjustment.
Galaxy Research said a significant drop in mining difficulty usually indicates that some miners have exited the network under profitability pressure. For miners, operating conditions are tied to block rewards, competition for hash rate, equipment efficiency and running costs. When profitability is squeezed, some participants shut down machines or reduce their hash rate contribution, which then feeds into the network’s difficulty adjustment process.
Based on Galaxy Research’s statement, the market is currently in a hash rate adjustment phase. The fact that Bitcoin mining difficulty has retreated by more than one-fifth from its record high shows that pressure among miners has become visible at the network level. The firm described this condition as miner “capitulation,” with the main basis being the scale of the difficulty drawdown and its connection to miners leaving the network.