Bitcoin's hash rate is falling as the Middle East conflict drives up energy prices, adding pressure to the mining sector.
The drop in hash rate is likely linked to higher oil prices, with an estimated 8% to 10% of global bitcoin mining operating in energy-sensitive markets.
Hash rate has fallen to 920 EH/s, a decline of about 8% over the past week, raising concerns about miner capitulation. Historically, such periods have coincided with price declines.
Bitcoin is currently trading below $72,000, down 5% from its Monday high. The network is set for an 8% difficulty adjustment, the second-largest in five years.
Rising competition, low transaction fees, and price volatility have squeezed miner margins, pushing some to diversify into AI and high-performance computing.
