The total computing power securing the Bitcoin network has fallen 4% this month, a sign that could point to stronger prices ahead, according to market analysts.
This drop in “hashrate” often signals that less efficient miners are being forced offline due to financial pressure. With Bitcoin’s price down nearly 30% from its October high and operational costs rising, miner profitability is being squeezed.
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Historically, such sustained declines have often been followed by significant price rebounds. Analysis shows that after similar 90-day hashrate drops, Bitcoin posted positive returns over the next six months 77% of the time.
While challenging for miners, this shakeout is seen by some as a potential consolidation phase before a recovery. Part of the mining power may be shifting permanently to artificial intelligence workloads.
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