Hashrate Down 15%: Miners Under Pressure

Crypto analyst James Van Straten noted that recent Bitcoin network data shows increasing pressure on miners. According to Van Straten, the network’s total computing power, measured as hashrate, has dropped approximately 15% from its peak in October. This decline highlights growing difficulties in mining operations and indicates that miner capitulation has been ongoing for around 60 days.

Data shows that the network’s average power, which was roughly 1.1 zettahash per second (ZH/s) in October, has fallen to about 977 exahash per second (EH/s) recently. This significant decline suggests that rising operational costs and reduced profitability have forced some miners to shut down their rigs or temporarily pause operations. Experts say this process also serves as a natural efficiency filter within the mining sector.

This trend is also reflected in Glassnode’s Hash Ribbon indicator. The indicator reversed on November 29, coinciding with Bitcoin’s approximate bottom near $80,000. The Hash Ribbon suggests that miners were compelled to sell BTC to sustain operations, creating additional short-term supply pressure on the market.

Van Straten emphasizes that miner capitulation historically serves as a contrary indicator. According to VanEck research, prolonged periods of miner stress have often preceded new upward momentum in Bitcoin prices. Inefficient miners exiting the market reduce selling pressure over time, allowing prices to recover. mThe Hash Ribbon indicates that if the 30-day moving average of hashrate crosses above the 60-day moving average, the most intense phase of capitulation may be over.

Difficulty Adjustments and AI Influence

The falling hashrate also triggers downward adjustments in Bitcoin mining difficulty. Current expectations suggest that difficulty will decrease by approximately 4% on January 22, reaching around 140 trillion. This implies that seven out of the last eight difficulty adjustment periods have seen negative changes. While lower difficulty can slightly improve profitability for remaining miners, overall network pressure has not yet fully eased.

Additionally, some miners are diversifying into alternative revenue streams such as artificial intelligence (AI) and high-performance computing (HPC). Large mining firms, like Riot Platforms, reportedly sell Bitcoin to fund capital-intensive AI and HPC projects. Analysts note that while this strategy may create short-term selling pressure, it fosters a more sustainable and diversified revenue model for the mining sector in the long run.

Assessment

Although the declining hashrate and increased miner sales create short-term market pressure, analysts believe this process contributes to a healthier and more balanced network. The exit of inefficient miners reduces selling pressure over time. Once this process completes, supply-side equilibrium is expected to form, leading to more stable and predictable price movements.

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Miner Stress and China Shutdowns

According to VanEck’s December 2025 ChainCheck report, over 400,000 mining machines in China’s Xinjiang province went offline. This removed an estimated 1.3 GW of capacity and reduced China’s computing power by around 100 exahashes within 24 hours. Analysts noted that this could account for about 10% of Bitcoin’s network hash rate.

Mining Economics Under Pressure

Bitcoin’s price dropped around 9% while volatility spiked, squeezing miners’ profitability. VanEck data shows that the electricity breakeven for a 2022 Bitmain S19 XP miner fell from $0.12 in December 2024 to $0.077 in mid-December 2025. Despite poor economics, many miners continue operations.

“While profitability for miners has been poor recently, many entities continue to mine despite periods of poor economics because they believe in Bitcoin’s future. To support the long-term hash rate of the Bitcoin network, we believe up to 13 nations are mining with support from their central governments.” – VanEck Analysts

Declining Hash Rate Historically Signals Gains

VanEck analysts emphasized that drops in hash rate have historically correlated with positive Bitcoin price performance. Since 2014, when hash rate declined, 90-day forward BTC returns were positive about 65% of the time. The 180-day forward returns averaged 20.5% during hash rate declines compared to 20.2% during increases. Technical and on-chain data suggest a potential recovery despite current pressure.

Price Update

According to Binance, Bitcoin was trading at $87,400 at the time of writing, down 1.77% in the past 24 hours.

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In a Twitter announcement, an official from the on-chain data and analytics platform CryptoQuant highlighted this unprecedented power requirement.

Bitcoin‘s halving, which occurs every four years, took place on April 20. As of that date, the reward for Bitcoin miners per block was halved to 3.25 BTC. According to CryptoQuant data, for the first time in history, more than 1 EH/s of hash power is required to produce one Bitcoin per day.

Currently, 1.13 EH/s of power is needed to mine one Bitcoin.

While this situation is negatively impacting Bitcoin miners, many companies are preparing to increase their power. Marathon Digital, the largest Bitcoin miner in the US, has announced plans to double its hash rate by the end of this year.

The post Bitcoin Hash Rate Surpasses 1EH/s for the First Time Ever in History! appeared first on Coin Engineer.

While a one-day peak of 711 EH/s was recorded on March 7th, the 14-day average provides a more reliable picture by smoothing out short-term fluctuations. This significant increase in hash rate points towards a predicted difficulty adjustment exceeding 3% in the coming epoch change on March 14th, according to Newhedge.

Bitcoin‘s core design prioritizes a consistent block time of roughly 10 minutes. This difficulty adjustment directly impacts the estimated timing of the next Bitcoin halving event. Based on the Clarkmoody dashboard, maintaining the ten-minute average block time could see the halving occur around April 21st.

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