BTC Hashrate Drops 17% Below Historical High

The Bitcoin (BTC) network hashrate has fallen to a level 17% lower than its historical peak. At the beginning of August, the average monthly decline exceeded 20%, attributed to the power allocation of mining companies and the transition to AI and high-performance computing (HPC) infrastructure. Currently, according to CryptoQuant metrics, the BTC hashrate is 17% lower than its all-time high. The decrease in hashrate may extend block generation times and affect the difficulty adjustment process. There are suggestions that some BTC miners may have transitioned to the AI sector. When mining difficulty is high and hashrate prices drop, equipment with high power costs faces pressure to shut down. CoinShares revealed in its Q1 2026 Bitcoin mining report that the public mining sector has announced over $70 billion in AI and HPC contracts cumulatively. The BTC holdings of mining companies have decreased by more than 15,000 BTC compared to their peak, and the cumulative amount of AI and HPC contracts has surpassed $70 billion. Currently, the BTC hashrate is lower than its peak, and some mining companies are reallocating their power and data center infrastructure to AI and HPC businesses.