Bitcoin Hash Rate Falls Four Percent – Historically Bullish Signal
Mining activity in the Bitcoin network declined significantly in December, which according to historical data could indicate positive price developments.
The hash rate of the Bitcoin network fell by four percent through mid-December – the strongest monthly decline in computing power since April 2024. This is according to a report by asset manager VanEck.
Historical data suggests, however, that declining hash rates could represent a contrarian signal. Since 2014, Bitcoin has posted positive returns within the following 90 days in 65 percent of cases during periods of declining computing power. With rising hash rates, this proportion was only 54 percent [1].
Parallel to the hash rate decline, mining profitability deteriorated significantly. The break-even electricity price for mining equipment fell from around $0.12 per kilowatt-hour at the end of 2024 to approximately $0.077 in mid-December. This means that only miners with extremely low energy costs can operate profitably.
At the same time, VanEck reports increased institutional activity: Treasury companies acquired approximately 42,000 Bitcoin between mid-November and mid-December, increasing their total holdings to around 1.09 million Bitcoin – the highest level since summer 2025 [1].
Sources
- [1]btc-echo.de
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