The sharp 15% decline in Bitcoin’s hashrate from nearly 943.6 billion terahashes per second on June 15 to 799.9 billion TH/s on June 24 has fueled speculation about the role of global tensions.
Many observers have pointed to Iran, which hosts significant mining operations, as a likely contributor. The situation escalated with a near-total internet blackout in Iran and subsequent US airstrikes on Iranian nuclear facilities, both of which coincided with notable dips in global hashrate.
However, analysis shows that only about 3% of the total drop matches the timeline of these events, suggesting that while geopolitical shocks played a part, they are not the sole cause.
Miner Profitability Crisis Intensifies
Underlying the hashrate slump is a profitability crisis for miners. The cost of mining Bitcoin surged by more than 34% in Q2 2025, driven by higher electricity prices and increased hardware and maintenance expenses.
This has forced many operators to suspend less efficient machines or temporarily halt operations to avoid losses.
The post-halving environment, which slashed block rewards, has further squeezed margins, making it unsustainable for some miners to continue unless Bitcoin’s price rises significantly.
Did you know?
The last time Bitcoin’s mining difficulty saw a comparable downward adjustment was in July 2021, following China’s sweeping ban on mining-a move that temporarily halved the network’s hashrate and reshaped the global mining landscape.
Seasonal and Environmental Factors Compound the Decline
The timing of the hashrate drop aligns with the northern hemisphere’s summer, a period historically marked by elevated electricity demand and higher power prices.
Heatwaves across the US have led to increased energy-saving measures, with some mining farms participating in programs to reduce grid load or shutting down to conserve power.
Previous years have observed this seasonal pattern, which now intensifies the current downturn.
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Network Security Holds Despite Volatility
Despite the dramatic fall, Bitcoin’s hashrate remains well above the lows seen in previous years, such as July 2023, when it stood at 379.55 EH/s. This suggests that, while the network is under pressure, its security and decentralization are not yet at risk.
The upcoming 9% downward difficulty adjustment, the largest since the 2021 China mining ban, is expected to provide relief by making mining less challenging and boosting miner revenue per exahash.
Pattern of Volatility and Dynamic Miner Response
This year alone, Bitcoin’s hashrate has peaked and dropped sharply four times, each cycle reflecting miners’ dynamic responses to changing profitability and external pressures.
The current decline is not unprecedented but does signal that miners are closely monitoring market conditions and adjusting operations accordingly.
As the difficulty adjusts and energy costs potentially stabilize, some of the lost hashrate may return, restoring balance to the network.
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