US Blizzard Forces Miners Offline — Bitcoin Hashrate Drops 12%, Mining Revenue Falls
A severe US winter storm forced multiple large Bitcoin mining operations to power down for grid management and equipment protection, triggering a sudden ~12% drop in global Bitcoin hashrate — the largest single-day decline since China’s 2021 mining ban. CryptoQuant data shows network hashrate fell to roughly 970 EH/s (the lowest since September 2025). Daily mining revenue plunged from about $45M on Jan 22 to a yearly low near $28M within two days, later recovering to roughly $34M but remaining below recent averages. Public miners’ reported daily BTC output fell from 77 to 28 BTC, while non-public miners’ output declined from 403 to 209 BTC; on a 30-day rolling basis, public miners lost 48 BTC and non-public miners lost 215 BTC — the largest declines since mid-2024. CryptoQuant’s Miner Profit & Loss Sustainability Index slid to 21, the weakest since Nov 2024, indicating many miners face financial stress despite recent difficulty drops. Continued suppressed hashrate could prompt further mining difficulty reductions, offering some relief to remaining miners but signaling near-term revenue and operational pressure. Key SEO keywords: Bitcoin, hashrate, mining revenue, CryptoQuant, mining difficulty, miners.
Bearish
The immediate effect of a ~12% drop in global Bitcoin hashrate and a sharp fall in daily mining revenue is bearish for BTC price in the short term. Sudden reductions in mining activity reduce selling pressure from miners who typically liquidate mined BTC to cover costs, which can be neutral-to-bullish; however, the data shows miner operations and profitability are under strain (Miner P&L Sustainability Index at 21) and production losses on a 30-day basis are substantial. That combination increases upside risk from subsequent difficulty reductions (which would ease margins for remaining miners) but also signals operational stress that can lead miners to liquidate holdings or delay reinvestment — both bearish. Historically, large, rapid hashrate shocks can create volatility as market participants reassess miner behaviour, revenue flows, and network security. In the medium term, if difficulty adjusts downward and miners resume operations without large liquidations, the bearish pressure could abate or reverse; if miner stress forces asset sales or capacity shutdowns persistently, the bearish impact could extend. Overall, expect short-term downward price pressure and heightened volatility, with medium-term direction dependent on difficulty adjustments and miner balance-sheet responses.