Data compiled by Woofun AI shows that Bitcoin mining difficulty has retreated by nearly 20% from its historical peak, indicating that miners are currently entering a phase of capitulation. This adjustment represents the most substantial decline in network difficulty since the regulatory ban implemented in China in 2021.

This significant drop suggests a period of reduced competitive intensity within the mining sector. The magnitude of the decrease underscores the structural shifts in hash rate distribution following the earlier exodus of mining operations from mainland China.