The Bitcoin network is showing signs of strain as hashrate falls to its lowest level in four months, highlighting growing competition between bitcoin mining and artificial intelligence workloads for electricity and infrastructure. Recent data shows the seven-day moving average hashrate has slipped to around 993 EH/s falling below the 1 zetahash per second threshold for the first time since mid-September.
This marks a nearly 15% decline from thhe October peak near 1,157 EH/s, even as conditions for miners have modestly improved. Mining difficulty has eased several times since November, reducing the computational effort required to mine blocks, while hashprice has climbed to about $40 per petahash per second per day, signaling better short-term profitability.
Despite these improvements, analysts point to a structural shift in the mining industry. Large operators are increasingly redirecting power capacity toward AI and high-performance computing services, which often offer more stable and attractive margins than bitcoin mining. Facilities built for mining already possess large-scale power access and advanced cooling, making them well-suited for AI workloads.
At the same time, some observers suggest that reported network hashrate may be understated, as hardware manufacturers could be deploying machines through private or undisclosed channels.
Overall, the decline underscores a key trend: AI is no longer adjacent to bitcoin mining—it is directly competing for the grid, reshaping how mining capacity is deployed across the industry.
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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.