Bitcoin mining hashrate set to slow down — Here’s why
The Bitcoin mining industry may experience some relief in 2025 as the hashrate — the total computing power of the network — is predicted to slow. This is due to a decrease in mining difficulty and lower preorders for mining hardware. On January 27, 2025, mining difficulty dropped to 108.1 trillion, marking the first reduction of the year, while the current hashrate stands at around 832 exahashes per second (EH/s). Data indicates a 2.12% retrace in difficulty over the past week, and demand for mining hardware from U.S. companies has dwindled in the latter half of 2024. This comes after a challenging year where many mining companies faced decreased profitability following the Bitcoin halving. Despite trying to diversify operations and invest more in Bitcoin for long-term appreciation, many publicly listed mining companies saw a decline in share prices for 2024. The fluctuating dynamics in the crypto space are also influenced by developments in high-performance computing and AI, particularly a new generative AI model from China which drastically cut training costs, impacting related tech stocks.
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