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Bitcoin faces its first hashrate bear market as miners shift focus to AI computing, lowering network power since 2025 peak.

Market News
02 Sep 2026, 11:35 WIB
Crypto news
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Bitcoin faces its first hashrate bear market as miners shift focus to AI computing, lowering network power since 2025 peak.

Bitcoin's network computing power, or hashrate, has declined about 22-24% from its late 2025 peak, marking what Twenty One Capital CEO Raphael Zagury calls the first "hashrate bear market." This prolonged drop differs from the sharp 2021 decline caused by China's mining ban, as miners now increasingly redirect infrastructure investment toward artificial intelligence (AI) data centers, which compete for similar resources. While some mining companies continue large Bitcoin operations, many are shifting to AI hosting, benefiting from lower network difficulty and potentially higher revenue share for remaining miners. The sector's future will depend on Bitcoin price trends, mining costs, and how companies balance mining with AI ventures.

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