Bitcoin’s hash rate is sliding as rising energy prices, fueled by the ongoing Middle East conflict, put added strain on miners and the broader market.
Over the past week, the network’s hash rate fell roughly 8% to 920 EH/s. Analysts attribute the decline to geopolitical tensions from the Iran war and surging oil costs, noting that 8% to 10% of global bitcoin mining occurs in regions highly sensitive to energy price fluctuations.
The drop raises the risk of another miner capitulation phase, historically linked to downward pressure on bitcoin prices. The cryptocurrency is trading below $72,000, about 5% off Monday’s high.
The hash rate decline is expected to trigger an 8% downward adjustment in mining difficulty—the second-largest negative shift in five years—following a significant drop in mid-February, highlighting the volatility in mining activity.
With low transaction fees, rising competition, and price swings compressing margins, many publicly traded miners are diversifying into AI and high-performance computing while increasing bitcoin sales to fund operations. These measures, while necessary, could continue to act as a headwind for bitcoin’s price.
