Bitcoin Hashrate Posts First Quarterly Drop in 6 Years as Miners Flee to AI
Bitcoin's network hashrate declined in Q1 2025, the first quarterly drop in six years, as miners reallocate computing resources toward AI applications. Roughly half of all circulating Bitcoin is now held at a loss relative to purchase price, and long-term holders are actively selling at a loss. Bitcoin is approaching a six-month losing streak that would tie its all-time record.
A falling hashrate signals that professional miners — the backbone of Bitcoin's security and price support — are losing conviction and redirecting capital to more profitable AI workloads. When half of all holders are underwater and long-term believers are capitulating, it removes a key demand floor. Combined with rising real interest rates reducing appetite for speculative assets, this is a structurally weak setup for BTC and correlated crypto assets like ETH and crypto-equity plays like MSTR and MARA.
Monthly CPI inflation report (watch for real interest rate direction). Next Fed rate decision and forward guidance. Any major Bitcoin exchange flow data or miner capitulation metrics on-chain. Q2 2025 hashrate data release.
- Nearly half of all circulating bitcoin is underwater as long-term holders sell at a loss · CoinDesk
- Bitcoin hashrate posts first-quarter drop for first time in 6 years as miners pivot to AI · CoinDesk
- Michael Saylor’s Strategy pauses weekly bitcoin buys, retains total holdings at 762,099 BTC · The Block
- Bitcoin Flashes 'Warning Sign' With Nearly Half of BTC Supply Sitting at a Loss: Report · Decrypt
- Google Paper Warns Crypto on Quantum Risk Ahead of 2029 Timeline · Bloomberg
- Breaking Bitcoin with quantum may be easier than thought, with Taproot partly to blame, Google says · CoinDesk
- Bitcoin demand falters as 'real' interest rates surge · CoinDesk
- Google Quantum Paper Boosts Odds of Bitcoin ‘Q-Day’ by 2032, Researchers Warn · Decrypt
- Downside risk remains as bitcoin nears record-tying six-month losing streak · CoinDesk
- Bitcoin bulls scramble for post-quantum protection as Google drops bombshell paper · CoinDesk
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