Seeing a bunch of accounts posting again: “Bitcoin hashrate hits a seven-month high, the network is stronger than ever, and the bull market is on solid footing.”
Let me put it bluntly: a new hashrate high has very little to do with whether your account balance goes up.
Here are the numbers: the seven-day average hashrate is back to around 1004 EH/s, still about 8.8% below its all-time high. The latest difficulty adjustment was +5.92%, bringing it to around 140.58T. Meanwhile, publicly listed mining companies’ realized hashrate fell 23% as major players like IREN, CIFR, and WULF shifted power toward AI/HPC. According to CryptoQuant’s Julio Moreno, the hardest-hit miners cut production by as much as 56%.
So who’s bringing all this hashrate online? Most likely, smaller mining operations and miners in places with cheaper electricity have taken over old machines sold off by large mining companies. The machines haven’t been retired—they’ve just changed hands.
Here’s the problem. Block rewards are fixed, and Bitcoin’s price is still hovering around 81,700. With hashrate and difficulty both climbing, revenue per unit of hashrate will only get squeezed further. Large mining companies are moving into AI because they’ve run the numbers: the marginal returns from mining just don’t look attractive enough. Those left picking up the old machines have thinner margins, and if the price falls another leg, they’ll be the first forced to sell their coins to pay the power bill.
Anyone touting a “new hashrate high” as bullish either doesn’t understand miners’ economics or has bags they want you to take off their hands. Network security really is stronger, but security isn’t price. Don’t conflate the two.
#BTC #Miners
Let me put it bluntly: a new hashrate high has very little to do with whether your account balance goes up.
Here are the numbers: the seven-day average hashrate is back to around 1004 EH/s, still about 8.8% below its all-time high. The latest difficulty adjustment was +5.92%, bringing it to around 140.58T. Meanwhile, publicly listed mining companies’ realized hashrate fell 23% as major players like IREN, CIFR, and WULF shifted power toward AI/HPC. According to CryptoQuant’s Julio Moreno, the hardest-hit miners cut production by as much as 56%.
So who’s bringing all this hashrate online? Most likely, smaller mining operations and miners in places with cheaper electricity have taken over old machines sold off by large mining companies. The machines haven’t been retired—they’ve just changed hands.
Here’s the problem. Block rewards are fixed, and Bitcoin’s price is still hovering around 81,700. With hashrate and difficulty both climbing, revenue per unit of hashrate will only get squeezed further. Large mining companies are moving into AI because they’ve run the numbers: the marginal returns from mining just don’t look attractive enough. Those left picking up the old machines have thinner margins, and if the price falls another leg, they’ll be the first forced to sell their coins to pay the power bill.
Anyone touting a “new hashrate high” as bullish either doesn’t understand miners’ economics or has bags they want you to take off their hands. Network security really is stronger, but security isn’t price. Don’t conflate the two.
#BTC #Miners