Key Insights:
- Bitcoin hashrate drops following a severe storm currently hitting the United States.
- Difficulty of mining has fallen consistently since November 2025 as miners reduce activity.
- BTC price expected to rally in the long-term once miners become profitable.
Bitcoin (BTC) hashrate fell sharply on Monday, Jan.26, 2025. Bitcoin hashrate serves as a vital metric for assessing the security and efficiency of the network.
It plays a crucial role in maintaining the integrity of the Bitcoin blockchain and its price. At the same time, the Bitcoin mining difficulty has fallen since November.
Bitcoin Hashrate Drawdown and Impact
On Jan.26, Bitcoin mining pools experienced a sharp drop in hashrate, according to CryptoQuant data. The hashrate fell from 1.133 ZH/s to 690 EH/s in just two days.
A higher Bitcoin hashrate indicates greater network security, as more miners are actively mining blocks. As more miners engage, they help reduce the risk of malicious attacks on the network.
Conversely, a drop in hashrate means miners are reducing their activity by voluntarily shutting down machines.
In essence, hashrate is a critical metric indicating the security level of a blockchain network. It also indicates the mining difficulty for miners to receive block rewards.
According to CryptoQuant analyst Darkfost, the drop in the BTC hashrate on Monday coincides with a severe storm currently hitting the United States. The country accounts for around one-third of the total hashrate.
The analyst explained that cold is also affecting Texas, where major mining players like MARA and Foundry Digital are located.
Over the past three days, the MARA hashrate has decreased by a factor of 4 compared to its monthly average. During extreme cold, the need to cut non-essential loads, and electricity costs spike due to power grid disruptions.
Considering the drop in mining difficulty, the time between blocks will continue to increase, and mining difficulty should drop sharply.
If the storm persists, this period of stress could trigger some BTC selling. Miners may still need to cover fixed operating costs while waiting for conditions to normalize.
Massive Bitcoin Mining Difficulty Drop
As expected, Bitcoin mining difficulty dropped to around 141.67T, alongside the drop in hashrate. In fact, the difficulty of mining has fallen consistently since November 2025.
The primary driver is unprofitability as miners shut down rigs or exit the business entirely.
BTC prices fell from 2025 highs of around $126,000, while electricity, hardware, and other costs remained high or rose. When revenue from mining falls below operating expenses, less efficient miners go offline.
However, profitability for those still in the game has not really changed. Lower difficulty should boost profitability for the miners who remain active.
With less competition, each remaining miner’s share of the network increases. So, they find blocks more frequently and earn more rewards relative to their own hash power.
BTC Price Outlook
Typically, miner exits and falling difficulty influence price in both directions, but the net effect often plays out over phases.
In the short term, unprofitable miners frequently sell their BTC holdings to cover fixed costs, pay debts, or exit. This adds sell-side supply to the market. Prolonged capitulation can also signal broader weakness in crypto fundamentals, contributing to downside volatility.
In the current context, BTC price traded around $87,900, with capitulation ongoing for nearly two months and difficulty still adjusting lower.
Some analysts view this as a short-term bottoming signal, especially if price stabilizes and hashrate recovers in USD terms. However, the ongoing storm in the U.S. can add more pressure.
Besides, BTC price is currently facing stronger selling pressure on the trading platform than on offshore exchanges, as indicated by the Coinbase Premium Index.
Still, most institutional investors view BTC price as undervalued and remain positioned to hold or buy. BTC has surged slightly by 0.8% over the previous day to $87,856.
If spot exchange-traded fund (ETF) outflows reverse, Bitcoin price could easily recover and climb to new highs.