Severe margin compression is forcing Bitcoin miners to take hardware offline, triggering one of the largest downward difficulty adjustments in the network's 17-year history. The automated recalibration, scheduled for June 13 at block height 953,568, will reduce the computational effort required to mine new blocks — a built-in mechanism designed to maintain Bitcoin's roughly 10-minute block time when hashrate falls. When miners shut down unprofitable machines, the network detects slower block production and lowers difficulty accordingly. The scale of this adjustment signals widespread financial stress across the mining sector, likely driven by a combination of elevated energy costs, compressed BTC margins following the April 2024 halving, and subdued Bitcoin prices relative to operational expenditure.
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