In August 2025, Bitcoin mining difficulty reached a record 127.6 trillion, indicating continued growth in the computing power that secures the network.
Despite increased technical difficulties, miners’ profits continue to grow. Analysts believe this rare phenomenon may indicate a new phase in the Bitcoin (BTC) market cycle.
The next mining difficulty adjustment, scheduled for August 9, is expected to slightly reduce this figure to approximately 124.71 trillion. The goal of the adjustment is to increase the block speed from 10 minutes 23 seconds to 10 minutes.
Periodic reconfigurations are essential for Bitcoin’s stability. They maintain stable supply and network operation despite fluctuations in the hash rate.
However, the anomaly is that the higher mining difficulty hasn’t reduced miner margins. On the contrary, network data shows that miner revenue peaked after the halving—$52.63 million per exahash per day.
“Bitcoin miner revenue per day is $52.63 million, down from $56.35 million yesterday and up from $25.64 million a year ago. This represents a -6.61% change from yesterday and a 105.3% change from a year earlier,” analysts at ychart.com reported.
This is an important signal given rising energy prices and increasing competition in mining. In a recent post, Blockware Intelligence, a Bitcoin mining analytics firm, highlighted this discrepancy.
“Bitcoin mining bullish scenario? BTC/USD is rising faster than mining difficulty. Over the past 12 months: > BTC/USD +75% > Mining difficulty: +53%. Bitcoin miner profitability is increasing,” the company stated in a recent post.
Historically, when Bitcoin’s price rises faster than mining difficulty, it occurs in the early stages of bull market cycles. Similar patterns were observed in 2016 and mid-2020, preceding significant price rallies.
The profit growth reflects demand dynamics: the current Kimchi premium in South Korea is +0.6%, indicating strong interest in BTC in the region. The Kimchi premium is the price difference between local exchanges and global markets.
Combined with the introduction of more efficient ASIC devices and the growth of institutional investment in mining, this points to the sector’s good health and optimism for Bitcoin’s future.
BTC’s scarcity is also worth remembering. Over 94% of the 21 million coins have already been mined, and its stock-to-flow ratio is around 120—twice that of gold. The cryptocurrency’s scarce nature protects it from inflation and devaluation, even with short-term price fluctuations.
However, the market hasn’t yet priced in the improved network fundamentals. After reaching July highs, Bitcoin fell below $115,000, indicating a temporary disconnect between the network’s technical health and investor sentiment.
Analysts attribute this divergence to macroeconomic challenges, trade policies, and changing capital flows. Meanwhile, miners appear to be outperforming the market. Rising difficulty, increasing margins, and strong regional demand could mark a turning point in the mining economy and the Bitcoin cycle. If history repeats itself, network strength could soon be reflected in the price.
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