Bitcoin mining is getting squeezed by the latest price slump, pushing older crypto mining rigs offline, data shows.
Bitcoin mining is coming under pressure as weaker economics force a reset across the network. Data from Hashrate Index, a platform that tracks crypto mining statistics, shows global hashrate fell about 5.8% to 1,004 EH/s in Q2 from 1,066 EH/s in Q1.
The decline came as Bitcoin price dropped from around $124,000 in October 2024 to about $65,000 in February of this year, pushing hashprice to “all-time lows,” Hashrate Index says.
That drop is forcing older Bitcoin machine fleets offline. Hashrate Index estimates about 252 EH/s of mining power is now offline, as older machines above 25 J/TH are no longer profitable.
What is Bitcoin Mining
Bitcoin mining is the process that keeps Bitcoin’s network moving. Specialized computers, called ASICs, compete to confirm transactions and add new blocks, while miners are paid with newly issued BTC▼$61,599.00 and transaction fees.
Read more: Solo Miner Adds Bitcoin Block, Earns Over $200,000
The network also adjusts itself over time. The mining difficulty rises or falls roughly every two weeks, depending on how much mining power is online.
- There is also a built-in supply shock. About every four years, in an event known as the Bitcoin halving, the reward for mining new blocks gets cut in half.
- After the April 2024 halving, the reward dropped to 3.125 BTC per block, and the next halving is expected by late March 2028, cutting the figure to 1.5625 BTC.
Bitcoin Mining Still Highly Concentrated
Despite the hashrate decline, the crypto mining map is still dominated by the same big players.
The U.S. held 37.4% of global hashrate, followed by Russia at 16.9% and China at 12%, while the top three still controlled about 65.6% of the network.
The data also shows that Kyrgyzstan, Paraguay, Laos and Finland kept growing thanks to newer hardware and cheaper power, while Ethiopia remains in the top 10 even despite a permit freeze.
Read more: Major Bitcoin Miners Actively Sell BTC Amid Rising Costs
