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Bitcoin’s total computing power, known as the hashrate, recently slipped below 1 zettahash per second (ZH/s) for the first time since mid-September 2025, marking a near 15% decline from its October peak, data from Hashrate Index shows.
This drop reflects an ongoing strain on miners navigating a tough post-halving profit environment, even as some metrics like hashprice have shown modest improvement in recent weeks.
Hashrate measures the aggregated computing efforts securing Bitcoin’s network; a decline typically indicates that some mining operations are shutting down or scaling back due to rising costs or shifting incentives.
Industry analysts say this development is notable for crypto investors because hashrate trends can signal broader shifts in miner economics and network security dynamics.
A key factor cited by industry observers is the competition for electricity resources between traditional mining and emerging high-performance computing applications, particularly artificial intelligence (AI).
In a post on X (formerly Twitter), Leon Lyu, CEO of StandardHash, attributed the slide to miners reallocating power capacity to AI compute services in search of higher profit margins.
“The net outflow of hashrate confirms the immense pressure on miner profitability. AI isn’t just a trend; it’s actively competing for the grid.” – Leon Lyu
This pivot reflects broader economic shifts. Bitcoin mining facilities often have access to large-scale power contracts and advanced cooling systems, infrastructure that can also support AI workloads.
With traditional Bitcoin mining revenue compressed after the 2025 halving and energy prices rising in key markets, some operators are diversifying into AI and high-performance computing to sustain margins.
Despite the drop in network hashrate, some profitability indicators have shown tentative improvement.
Over the past month, the hashprice, a metric measuring miner revenue per unit of computational power, rose modestly from around $37.15 to roughly $40 per petahash per day, suggesting some relief for operators still active in Bitcoin mining.
At the same time, the Bitcoin mining difficulty, an algorithmic adjustment that determines how hard it is to mine new blocks, has eased four times since November 2025, lowering barriers temporarily as mining power retreats.
However, these technical adjustments have not fully offset broader cost pressures. Many miners face rising electricity costs globally, tightening profit margins, and making older, less efficient hardware uncompetitive.
As margins thin, pressure grows on smaller mining firms, while larger operations with access to cheaper power and cutting-edge rigs may consolidate their share of the network’s computing power. Institutional research reports have noted this stress in the sector.
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Network security dynamics: A lower hashrate reduces the total computational power protecting Bitcoin’s blockchain, potentially affecting short-term security metrics.
Sustained declines could raise questions about vulnerability to certain attack vectors, though Bitcoin has historically maintained robust defences even amid fluctuations.
Miner profitability as a sentiment signal: Hashrate movements often parallel miner sentiment and economic viability. A marked pullback can signal capitulation in tight market conditions, prompting investors to reassess near-term risk appetite.
Long-term structural shifts: The rising intersection between crypto and AI infrastructure investment underscores a broader trend of capital and energy resources migrating toward the most profitable compute workloads, reshaping traditional mining economics.
Industry experts stress that the current hashrate contraction may be part of a cyclical adjustment rather than a structural crisis, especially given Bitcoin’s resilience and network fundamentals.
However, the evolving dynamics between energy markets, AI demand, and miner cost structures are likely to remain under close observation by investors and analysts alike.
“Mining economics have become increasingly challenging, with many operators pushing for alternative revenue streams beyond SHA-256 hashing,” – Mining industry analyst.
As the sector navigates this complex landscape, hashrate trends will remain a key barometer for the health of Bitcoin’s decentralised infrastructure and underlying economic incentives.
