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Bitcoin News: Hashrate Declines – Crash Due to Artificial Intelligence?
The Bitcoin network is currently experiencing significant pressure on its hashrate, which has been declining since October 2025. This downturn indicates increasing structural stress within the mining sector, as miners are shutting down their devices due to shrinking margins and rising energy costs. Analyst Leon Lyu suggests that AI data centers are becoming a central competitor for electricity and infrastructure, further exacerbating the situation.
"Despite new hardware, more hashrate is leaving the market than is being added," says Lyu, highlighting the ongoing challenges faced by miners.
As of now, the total hashrate has fallen below 1 zettahash per second for the first time since September 2025, signaling a clear stress signal in the network. The expected difficulty adjustment of approximately 4.3% reflects the network's response to decreasing computational power.
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In summary, the Bitcoin hashrate is under significant pressure, with miners facing tough decisions as they navigate rising operational costs and competition from AI technologies.
Mining Landscape Facing Structural Changes
Leon Lyu categorizes the recent decline in Bitcoin's hashrate as a sign of a deeper structural change in the mining sector rather than a temporary anomaly. The shift in mining capacity towards AI data centers is driven by the potential for higher and more stable margins in that sector. This transition is expected to slow down the growth of the hashrate while simultaneously removing competition from the network, thereby supporting the profitability of remaining miners.
Galaxy analysts had previously predicted this shift, indicating that mining operations would increasingly relocate to areas with stranded energy resources, where excess energy is available at lower costs. This strategic pivot is seen as a necessary adaptation to the evolving landscape of energy and computational resource allocation.
In conclusion, the mining sector is undergoing significant structural changes, with a notable shift towards AI applications impacting traditional Bitcoin mining operations.
Miners Positioning for Long-Term Changes
Analysts from Galaxy have outlined the evolving dynamics between Bitcoin mining and AI/high-performance computing (HPC). They argue that the AI boom is not a death knell for mining but rather a transformation in energy and infrastructure allocation. Miners are increasingly focused on maximizing the "value of an electron," meaning they will prioritize locations that yield the highest returns.
This strategic shift may slow the growth of the hashrate but could also enhance the profitability of the remaining miners by reducing competition. The current pressure on the hashrate is viewed as a transitional phase that was anticipated by analysts.
In summary, miners are adapting to long-term changes in the market, focusing on optimizing their operations in response to the growing influence of AI technologies.
Are Miners Capitulating?
Despite the ongoing challenges, a full capitulation of miners has not yet occurred. The Hash Ribbon, an on-chain indicator, suggests that while mining profitability is under pressure, the market is still in a phase of adjustment rather than outright capitulation. Current data indicates that miners are selling Bitcoin at a moderate pace, reflecting a cautious approach rather than panic.
Analyst João Wedson notes that while the global decline in hashrate serves as a warning sign, it does not yet indicate a complete capitulation. The market remains in a fragile transitional phase, with further pressure potentially leading to a more significant capitulation in the future.
In conclusion, while signs of miner capitulation are emerging, the market is still adjusting, and a full-scale capitulation has yet to materialize.
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