Bitcoin Hashrate Falls 40%, Is BTC Price Rebound at Risk?

Key Insights:

• Bitcoin BTC hashrate drops 40% as miners shut down amid rising costs.
• Peter Schiff urges a shift to gold as the price of Bitcoin remains flat.
• Analysts question whether Bitcoin is undervalued under current market conditions.

Bitcoin hashrate has fallen by roughly 40% from its peak. This development is drawing attention to miner exits. Notably, fresh gold arguments and growing doubts about whether Bitcoin price still reflects what is happening across the wider market remain in the spotlight.

Bitcoin Hashrate Fall Shows Growing Pressure on Miners

Bitcoin hashrate dropped sharply in early 2026, marking the biggest decline seen since 2021. The fall points to miners shutting down operations as costs rise and profits shrink.

Electricity prices remain high in several regions, while the price of Bitcoin has stayed mostly flat for weeks. This mix has pushed many miners into difficult positions.

Hashrate tracks how much computing power is used to secure the Bitcoin BTC network. When that number falls fast, it usually means miners are switching off machines. That could be because mining no longer makes sense at the current price of Bitcoin.

This time, the scale of the drop suggests that larger players are involved, not just small operators. Charles Edwards of Capriole said the decline represents the biggest miner capitulation in years. He linked it to a drop in Bitcoin energy value, which reflects how much the network security is worth based on power costs.

According to Edwards, the move suggests that some miners are not just waiting for better conditions but are leaving crypto altogether.

In past cycles, similar drops had mixed results. Sometimes prices recovered after miners exited. Other times, the market stayed quiet for months. The network itself remains secure, but long periods of falling hashrate often affect confidence.

Right now, there is no clear sign that miners are rushing back. Difficulty adjustments may help slightly, but without stronger price movement, pressure remains. Bitcoin hashrate is still far below its record level.

Peter Schiff Renews Gold Call as Price of Bitcoin Slows

As the hashrate decline gained attention, Peter Schiff returned to his long-standing criticism of Bitcoin (BTC). Schiff argued that Bitcoin is losing value when compared with gold, noting that it is far below its 2021 peak when priced in real money.

He urged holders to sell Bitcoin and move into gold before losses grow. Schiff also pointed to gold’s recent surge, including its largest one-day dollar gain on record. He described this as evidence that traditional stores of value are performing better while the price of Bitcoin BTC struggles.

Schiff warned that inflation can hide real losses and said markets are facing a serious downturn. His comments drew strong reactions online. Some users agreed and said they sold Bitcoin for gold earlier.

Others mocked the advice, reminding him that Bitcoin has outperformed gold by a wide margin since he dismissed it more than a decade ago. This back-and-forth highlights a familiar split. Gold supporters see the Bitcoin hashrate drop as proof of weakness.

Bitcoin supporters argue that short-term moves do not erase long-term gains. With gold rising and Bitcoin holding steady, the debate has returned to the spotlight.

Is Bitcoin BTC Hashrate Pointing to a Pricing Problem?

Analyst Miles Deutscher raised another issue, questioning whether Bitcoin price matches current conditions. He listed a weaker dollar, lower interest rates, rising global liquidity, and record highs in stocks and metals. Under those conditions, he said Bitcoin BTC should be trading much higher.

Bitcoin hashrate falling while price stays flat has added to that concern. Some traders believe the market is slow to react and will adjust later. Others think miner stress and reduced investment are holding Bitcoin BTC back.

The price of Bitcoin was trading around $87,800 at press time, with a market value of nearly $1.75 trillion. Trading volume has increased, but price movement remains limited.

Whether the hashrate drop marks a turning point or a warning sign depends on how quickly miners stabilize and whether broader demand returns. For now, Bitcoin hashrate remains one of the clearest signals the market is watching closely.