The bitcoin mining difficulty had adjusted upward for the majority of 2022, recording its highest correction in the same year. However, 2023 kicked off with a downtrend as the mining difficulty has begun to drop. A sharp drop in this metric recorded in the early hours of Tuesday could be the start of a trend reversal in this regard.

It declined suddenly on Tuesday morning during Asia hours. Data from CoinWarz shows that it had fallen almost 3.6% in a sharp downward correction. This took the mining difficulty from the 35.36T that it was trending at to 34.09T following the adjustment. 

The bitcoin mining difficulty is important in the fact that it actually measures how much power is needed to verify transaction blocks on the network. The higher this figure is, the more demand it shows for the bitcoin network. And the lower it becomes, it means there are fewer miners on the network.