Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Markets
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Bitcoin hash rate slides during U.S. winter
Markets
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Bitcoin hash rate slides during U.S. winter
Bitcoin hash rate slides during U.S. winter storm while markets shrug off mining disruption
Bitcoin hash rate slides during U.S. winter storm while markets shrug off mining disruption
The temporary loss of mining power underscores academic concerns that geographic and pool concentration can magnify infrastructure failures, though markets showed little immediate reaction.
By Sam Reynolds|Edited by Oliver Knight
Jan 26, 2026, 11:43 a.m.
Make us preferred on Google
(Zac Durant/Unsplash)
What to know:
- Bitcoin’s hashrate fell about 10 percent during a U.S. winter storm, underscoring how local power disruptions can strain the network’s capacity to process transactions.
- Researchers have shown that concentrated mining, as seen in a 2021 regional outage in China, can lead to slower block times, higher fees and broader market disruptions.
- With a few large pools now controlling most of Bitcoin’s hashrate, the network is increasingly vulnerable to localized infrastructure failures, even as the price of BTC remains largely unaffected in the short term.
A sharp drop in the Bitcoin blockchain's hashrate, down 10% on Sunday, during this week’s U.S. winter storm, is offering a real-time stress test of a concern long flagged by researchers: mining centralization has turned local infrastructure failures into system-level risks.
Hashrate is the amount of computing power available to process transactions required to keep the Bitcoin blockchain running at any given moment. When it drops sharply, the network has less room to process transactions, increasing the risk of delays before the difficulty resets.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Sign me up
(CoinWarz)
While the Bitcoin blockchain continued to operate through the storm – as only 10% of the blockchain's hashrate went offline – a growing body of academic research suggests its exposure to such events has grown.
In a 2021 working paper, Bitcoin Blackout: Proof-of-Work and the Risks of Mining Centralization, researchers Philipp Scharnowski and Jiahua Shi found that a regional mining outage in China in 2021 led to longer block times, higher transaction fees, and degraded market quality, showing how concentrated mining can turn local power failures into network-wide disruptions.
That research helps contextualize why rising concentration in BTC mining matters, as block production has increasingly clustered among a handful of dominant pools.
The Mining Centralization Index indicates that block production is now dominated by a small number of pools, reducing the network’s ability to absorb localized shocks.
(Mining Centralization Index/mainnet.observer)
Over the past two years, the top two mining pools have often controlled more than 50% of Bitcoin’s hash rate, while the top six pools have consistently accounted for roughly 80% to 90% of all blocks, leaving much of the network’s transaction processing in the hands of a few operators.
For now, markets appear unfazed, as BTC barely moved on the day, but the episode highlights how the Bitcoin blockchain's growing mining concentration can turn physical infrastructure failures into system-level stress without immediately showing up in the price.
btcHashrate
More For You
KuCoin Hits Record Market Share as 2025 Volumes Outpace Crypto Market
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
View Full Report
More For You
Bitcoin risks fourth straight monthly loss, a streak not seen since 2018
A rare streak of four consecutive declines collides with January options expiry that could influence short term price action.
What to know:
- Bitcoin is hovering near $87,000 and is on track for a fourth consecutive negative monthly close, a pattern not seen since 2018.
- Jan. 30 options expiry on Deribit totals about $8.5 billion in notional value, with heavy interest in $100,000 calls and a max pain level near $90,000.
Read full story
Latest Crypto News
Bitcoin risks fourth straight monthly loss, a streak not seen since 2018
Bitcoin rebounds from one-month low while derivatives flash near-term stress: Crypto Markets Today
Japan ETFs said likely to trade by 2028 as SBI, Nomura ready products
Bitcoin income windfall drives Metaplanet to revise full-year revenue forecast upward
Key bitcoin price levels to watch as downward pressure builds
Ark Invest bought $21.5 million of crypto company shares as bitcoin fell under $90,000
Top Stories
Gold tops $5,000 as bitcoin stalls near $87,000 in widening macro-crypto split: Asia Morning Briefing
The big U.S. crypto bill is on the move. Here is what it means for everyday users
How the ultra-wealthy are using bitcoin to fund their yacht upgrades and Cannes trips
Here's what Fed's highly anticipated rate decision this week means for bitcoin and the dollar
Here's what bitcoin bulls are saying as price remains stuck during global rally
Coinbase CEO says big banks now view crypto as an ‘existential’ threat to their business
Latest Crypto News
Bitcoin risks fourth straight monthly loss, a streak not seen since 2018
Bitcoin rebounds from one-month low while derivatives flash near-term stress: Crypto Markets Today
Japan ETFs said likely to trade by 2028 as SBI, Nomura ready products
Bitcoin income windfall drives Metaplanet to revise full-year revenue forecast upward
Key bitcoin price levels to watch as downward pressure builds
Ark Invest bought $21.5 million of crypto company shares as bitcoin fell under $90,000
Top Stories
Gold tops $5,000 as bitcoin stalls near $87,000 in widening macro-crypto split: Asia Morning Briefing
The big U.S. crypto bill is on the move. Here is what it means for everyday users
How the ultra-wealthy are using bitcoin to fund their yacht upgrades and Cannes trips
Here's what Fed's highly anticipated rate decision this week means for bitcoin and the dollar
Here's what bitcoin bulls are saying as price remains stuck during global rally
Coinbase CEO says big banks now view crypto as an ‘existential’ threat to their business
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
You May Also Like
Federal Reserve Lowers Interest Rates Again
The Federal Reserve has made the decision to lower interest rates by 25 basis points, signaling the possibility of further reductions later this year. This move comes as Fed officials appear divided on the future rate path, a divergence not seen in prior economic cycles.Continue Reading:Federal Reserve Lowers Interest Rates Again
Share
Coinstats2025/09/18 02:38
XRP ETFs Hit $2B as Institutional Demand Surges
The post XRP ETFs Hit $2B as Institutional Demand Surges appeared on BitcoinEthereumNews.com. Spot XRP ETF Volume Surpasses $2 Billion Amid Growing Institutional
Share
BitcoinEthereumNews2026/01/27 23:53
XRP to Stay Bearish While Trading Below This Key Level
The post XRP to Stay Bearish While Trading Below This Key Level appeared on BitcoinEthereumNews.com. Home » XRP ‘; } function loadTrinityPlayer(targetWrapper,
Share
BitcoinEthereumNews2026/01/28 00:31