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Bitcoin hashrate has dropped to its lowest level in 4 months, falling below 1 zettahash/second for the first time, despite recent signs of improved Bitcoin mining profitability.
According to Leon Lyu, CEO of StandardHash, the main reason is that many Bitcoin miners are shifting electricity and machinery to serve AI, as AI currently offers higher profits.
The year 2025 is seen as the most challenging period for Bitcoin miners to date, with declining revenue, increasing debt, and shrinking profit margins. Meanwhile, AI and high-performance computing are generating better returns, causing companies with abundant power sources and easy cooling systems to switch to running AI instead of continuing Bitcoin mining.#TariffTensionsHitCryptoMarket