Bitcoin’s network hashrate has recorded its sharpest decline in several years, signalling renewed stress across the mining sector.
Network computing power has fallen by around 12% since November 11, according to data published by CryptoQuant.
The hashrate drop has pushed the network to its lowest level since October 2021, a period marked by major structural disruption.
Analysts describe the contraction as the largest since China’s mining ban triggered a mass relocation of operators.
Total hashrate slid from above 630 exahashes per second to roughly 560 exahashes per second in under two months.
Mining revenue has fallen to about $28 million per day, placing earnings near the lowest levels seen in the past year.
CryptoQuant’s Miner Profit and Loss Sustainability indicator has weakened to levels comparable with late 2024.
North American mining participation has reportedly declined as firms respond to operational and technical constraints.
Extreme winter weather across parts of the United States has been cited as a key factor behind the sudden slowdown.
Several mining companies reduced output or temporarily shut down equipment to avoid overloading local power grids.
Industry data shows that cold weather placed additional strain on energy infrastructure serving large mining farms.
Reduced computing power has marginally slowed block validation times across the network.
Mining firms continue to face fixed costs for energy and infrastructure despite falling network participation.
Analysts warn that prolonged pressure could force operators to reassess expansion and investment strategies.
A sustained hashrate decline may raise concerns around network robustness, despite Bitcoin’s long record of resilience.
Lower aggregate computing power can theoretically increase exposure to attack attempts, though risks remain limited.
Institutional investors continue to monitor network health as a proxy for long-term confidence.
Bitcoin’s protocol is expected to respond through its automatic difficulty adjustment mechanism.
Mining difficulty recalibration occurs every 2,016 blocks to stabilise block production.
These adjustments are designed to support network stability during cyclical changes in miner participation.
Market observers note that mining company share prices have continued to trend lower amid the uncertainty.