Bitcoin's hashrate saw its most dramatic fall of the last three years between June 15 and 24, according to data from Blockchain.com. Bitcoin's hashrate decreased from nearly 943.6 billion terahashes per second (TH/s) on June 15 to 799.9 TH/s on June 24 — a decline of more than 15% and a level not seen since May.
The sharp drop has fueled speculation about possible geopolitical and environmental causes. While the reason behind the sudden downturn is not yet confirmed, many in the cryptocurrency community are pointing to Iran as the cause of the fall in Bitcoin's hashrate.
Bitcoin Hashrate is defined as the Bitcoin mining difficulty of the blockchain. It measures how difficult it is to mine a Bitcoin. Hashrate measures how many guesses are submitted per second to the entire blockchain. A higher hashrate indicates the need for more computing power, increased energy costs, and longer verification and transaction times. This results in slower and more expensive Bitcoin mining.
Hashrate is a measure of the total computational power of all participating nodes expressed in units of hash calculations per second. A higher hashrate signifies a stronger and more secure blockchain network. Increased computational power dedicated to mining operations acts as a defense mechanism, making it more challenging for malicious entities to disrupt network operations. It serves as a barrier against potential attacks, particularly the significant concern of a 51% attack.
Mining difficulty, intrinsically connected to hashrate, indicates the challenge miners face in producing a hash lower than the target hash. It is purposefully designed to adjust periodically, ensuring a consistent addition of blocks to the blockchain. An increase in the miner count results in higher hashrate. This surge is often driven by the attractiveness of potential returns due to the escalated demand for cryptocurrencies, such as Bitcoin or Ethereum.
However, there is also another side. According to a chart from Blockchain.com, the 7-day average Bitcoin Hashrate peaked at approximately 943.6 EH/s on June 15th. However, it has since dropped to 834.8 EH/s, marking an 11% decrease from the record high. This rapid decline has raised concerns about the financial health of miners and their confidence in the cryptocurrency market.
Miners' behavior is often linked to the trend in the Bitcoin price, as they depend on price growth to improve their margins. Sometimes, miners expand or decommission operations based on their expectations of future price movements. However, these bets do not always pay off. While the latest drawdown in the Hashrate could be a temporary setback, a prolonged decline could signal a real shift among miners.
Generally, changes in the Hashrate do not directly impact the Bitcoin price. However, a decline can indicate distress among miners, which could force them into selling their holdings. This could potentially affect the market dynamics and the overall sentiment towards Bitcoin. As electricity prices and hardware and maintenance costs have increased, many miners have suspended operations to avoid losses.
According to data from BitInfoCharts, Bitcoin's daily average hashrate has dropped to 684.48 EH/s, the lowest since mid-October last year. This decline, from a peak of 966 EH/s on June 20, 2025, raises a significant question: is this an opportunity or a risk for the cryptocurrency market? The primary cause of this decline could be related to the surge in Bitcoin mining costs, which increased by more than 34% in Q2 2025 when the hashrate hit new highs.
Despite the hashrate dip, Bitcoin holds at $106,000, supported by ETF growth and resilience against stock market volatility. If the hashrate drops further and the difficulty adjustment does not occur in time, selling pressure from miners could cause Bitcoin's price to decline. Additionally, macroeconomic factors such as geopolitical tensions and the Fed's interest rate policies could impact the crypto market.