Bitcoin hashrate in a downward trend: Miners under pressure with inverted hash ribbon

The computing power of the Bitcoin network is in a prolonged period of weakness. Since peaking in October, the hashrate has dropped by about 15%, reflecting the increasing difficulties faced by miners. One particularly powerful indicator — Glassnode’s Hash Ribbon — inverted on Nov. 29 after Bitcoin dropped near the $80,000 mark. This technical reversal signals a critical phase for the mining industry.

Hash Ribbon Inverts – A Critical Sign for Miners

The Hash Ribbon is an indicator developed by Glassnode that tracks miner capitulation by comparing short-term and long-term hashrate trends. Typically, when this indicator inverts, it means that miners are under pressure to be profitable and are increasingly forced to sell their Bitcoin to cover operating costs.

The average computing power that secures the network has fallen from about 1.1 zettahashes per second (ZH/s) in October to about 977 exahashes per second (EH/s) – a clear sign that miners are shutting down machines or reducing their operations while profitability is shrinking. This decline has now spanned almost 60 days and is intensifying selling pressure in the market.

However, this inverted signal also offers a contrary perspective. VanEck notes that periods of sustained miner strain have historically preceded a renewed dynamic in the Bitcoin price — a phenomenon that occurs when inefficient miners drop out and selling pressure is ultimately exhausted.

Continuous difficulty adjustments exacerbate the situation

Bitcoin’s mining difficulty automatically adjusts to keep block times close to 10 minutes. However, this adjustment is currently in a negative sense: a 4% cut to about 139 trillion (T) is forecast for January 22 – this would be the seventh negative adjustment in the last eight periods.

Such repeated downward difficulty adjustments add to the economic pressure, as they signal that the network has less computing power overall. However, the hash ribbon could soon give a recovery signal again: As soon as the 30-day average of the hashrate rises above the 60-day average again, often a scenario that is accompanied by improved price development.

From Bitcoin to AI: Miners are diversifying their business models

Additional selling pressure is created by miners reshaping their business model. Companies like Riot Platforms are selling Bitcoin holdings to fund capital-intensive investments in artificial intelligence (AI) and high-performance computing (HPC). This strategic realignment contributes to market pressures in the short term, but could improve mining profitability in the long term.

The larger players in the industry see AI and HPC as a lucrative growth area. By reallocating resources, they hope to be less dependent on the Bitcoin mining cyclical and instead invest in the booming fields of artificial intelligence.

Market Consequences: Crypto Stocks and Trading Volumes Under Pressure

The consequences of this mining capitulation extend beyond the industry. Crypto-related stocks were already experiencing declines under heavy pressure in early January, and this tendency intensified further when Bitcoin fell below $84,000 in early 2026. The current BTC quotation is around 83.53K USD.

Spot crypto trading volumes have been massively reduced – from $1.7 trillion last year to $900 million. This halving reflects cooling market enthusiasm and a more cautious investor mentality marked by macroeconomic uncertainties.

Outlook: Technical indicators as a glimmer of hope

While the coming weeks are likely to remain challenging for miners, technical indicators such as the inverted hash ribbon point to possible changes ahead. The history of Bitcoin mining shows that periods of extreme stress often act as harbingers of price recovery. The most important thing now is whether the hashrate stabilizes and the hash ribbon turns up again – signals that are traditionally associated with improved market momentum.