Falling Bitcoin Hash Rate Sparks Debate—but History Offers Hope

[kevin1]

Estimated Bitcoin hash rate, petahashes/second. Source: Coinmetrics.io

Bitcoin mining activity has come under pressure as rising energy costs squeeze miner profitability. The network hash rate has dipped from its October peak, raising concerns about miner capitulation and forced selling. Some miners are increasingly relying on debt and equity financing to stay afloat.

However, analysts at VanEck argue that declining hash rate has historically been a bullish contrarian signal. Past data shows Bitcoin often posts positive returns within 90 days of sustained hash rate drops, suggesting that short-term stress in mining could eventually support higher prices if selling pressure eases.