TLDR
- Hashrate fell ~4%, the sharpest pullback since April 2024 amid tighter markets
- Past hashrate contractions often preceded stronger 90- and 180-day returns ahead
- Rising power costs squeezed margins, forcing high-cost miners to shut rigs fast
- Institutional buyers absorbed supply, adding stability during miner stress cycles
- Compression may signal capitulation now and a healthier Bitcoin network ahead
A broad shift in network activity signaled new pressure across the mining sector, and this Bitcoin miner slowdown arrived as market conditions tightened. However, historical patterns pointed toward stronger performance after similar contractions, and this trend again drew attention across the market. Moreover, analysts noted that declining computational power often aligned with healthier long-term network dynamics.
Hashrate Compression and Forward Returns
The Bitcoin miner slowdown gained momentum as network hashrate dropped about 4% in the month through December 15. Although the pullback marked the sharpest decline since April 2024, the contraction also aligned with past periods that preceded stronger price performance. Furthermore, data since 2014 indicated that negative hashrate growth often produced higher forward returns.
VanEck reported that Bitcoin historically posted stronger 90-day and 180-day gains when hashrate fell over extended periods. Thus, patterns signaled that the Bitcoin miner slowdown often reflected capitulation among weaker operators who exited the network. Consequently, the remaining miners tended to face less competition and improved long-term positioning.
Analysts also highlighted that longer stretches of compression often delivered higher average returns. Therefore, they framed the Bitcoin miner slowdown as a contrarian setup rather than a structural setback. As a result, recent weakening in hashrate again raised expectations for a constructive phase.
Mining Economics Under Pressure
Mining economics weakened sharply as power costs and market prices shifted through late 2025. As profitability thinned, the Bitcoin miner slowdown accelerated because many operators struggled to sustain mid-generation rigs. The breakeven power threshold for key equipment fell to about $0.077 per kilowatt-hour.
This drop restricted profitability to miners with cheaper energy access. High-cost operators reduced activity or shut down hardware, which reinforced the Bitcoin miner slowdown. Industry sources reported that inspections in China’s Xinjiang region removed nearly 1.3 GW of capacity.
These closures triggered an estimated loss of about 100 exahashes per second in a single day. Therefore, the network absorbed significant disruption during an already weak phase. Meanwhile, the Bitcoin miner slowdown continued as global operators adjusted to shifting economics.
Institutional Accumulation Strengthens Market Balance
Larger buyers increased accumulation during the recent downturn, and digital asset treasuries expanded holdings through mid-December. Their demand offset some miner-driven supply pressure, which partially steadied market sentiment despite the Bitcoin miner slowdown. These entities purchased about 42,000 Bitcoin over the month.
This shift lifted total holdings to roughly 1.09 million Bitcoin. Thus, structural demand remained intact even as volatility persisted. Some treasuries explored preference-share funding to support future acquisitions.
Bitcoin traded near $87,278 after a steep retreat from its recent peak. Although price swings persisted, the Bitcoin miner slowdown signaled a potential setup for the next bullish phase. Consequently, market watchers assessed whether continued compression might again precede a stronger rally.
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