Hashrate's Hitting the Snooze Button — Miners Are Feeling the Pinch ⛏️

Bitcoin's mining sector is showing fresh signs of strain, with on-chain data indicating that economic pressure on operators has intensified alongside the asset's recent price decline. The network's hashrate has dropped by more than 25% since October 2025, marking one of the longest sustained drawdowns on record and suggesting that a significant share of mining capacity has gone offline as conditions deteriorated. The pullback in computational power has coincided with weaker miner economics, as Bitcoin's Puell Multiple has slipped to 0.74 and miner revenues have fallen 11% over the past 10 days. Those metrics now sit well below historical averages, pointing to compressed profitability across the sector. The pressure comes as $BTC has corrected nearly 20% from its $75,000 peak, translating lower prices directly into lower block-revenue income for miners.

Analysts tracking capitulation signals note that the current setup echoes past stress episodes, even if it has not yet matched the extremes of prior cycles. The Miner Capitulation Index has climbed above 65, a reading that has historically preceded periods of forced selling as rising costs and falling revenues squeeze operator margins. In the 2022 cycle, accelerating miner capitulation contributed to a 65% drawdown in $BTC, a textbook example of how stress in the mining cohort can amplify broader bearish moves. Current conditions appear to be moving in a similar direction, with hashrate continuing to slide and revenues still trending lower. Observers caution that miner stress, while trending upward, remains below the levels reached in 2022, leaving the full capitulation phase unfinished. That leaves the market still working through an extended period of miner pressure, with a definitive $BTC bottom difficult to confirm while these on-chain indicators continue to deteriorate.