Bitcoin miners have entered a “capitulation phase,” Galaxy Research said, after mining difficulty fell about 19.9% from its 156T peak in November 2025 to 125T. The firm said the drop is the largest since China’s 2021 mining ban and points to rising profitability pressure that may be forcing some miners to shut down equipment or exit the network. In mining markets, lower difficulty typically reflects weaker competition after hash rate, the computing power securing Bitcoin, adjusts as less efficient operators pull back.