Bitcoin's Hashrate Slips Below 1 Zettahash After Months at Record Power

Bitcoin’s network hashrate has dropped below 1 zettahash per second (ZH/s) on January 17, 2026, ending a 90-day period during which it consistently held above that threshold according to Bitcoin Network data. The hashrate now stands at 988 exahash per second (EH/s), down from a peak of 1,162 EH/s in mid-October 2025. This decline comes amid shifting mining dynamics, including reduced profitability and adjustments in network difficulty.

The drop in hashrate follows a record high of 1.162 ZH/s in late October 2025, driven by rising network activity and a surge in mining operations as reported. However, miners have faced financial pressures over the past few months, with the hashprice—the estimated revenue per petahash of mining power—falling to a low of $34.55 in mid-November. Since then, it has rebounded to $41.22 per PH/s as of January 17 according to data.

Bitcoin’s difficulty adjustment has provided some relief. On January 8, the network’s difficulty dropped by 1.2%, easing the computational burden on miners. A projected 5.45% further decline is expected ahead of the next adjustment on January 22 according to network analysis. This temporary respite is expected to improve the efficiency of mining operations as the year progresses.

Why Did the Hashrate Drop Below 1 ZH/s in January 2026?

The decline in hashrate reflects a combination of factors, including reduced profitability for miners and a recent pullback in network difficulty. During the high hashrate period, the hashprice peaked at $49.79 per PH/s, but a sharp drop in November 2025 led to a contraction in mining activity according to Bitcoin data. Miners began reducing their operational footprint as the cost of computing power and energy expenses outpaced block rewards and fees.

Another key factor is the slower-than-average block time. As of January 17, the average block time is 10 minutes and 34 seconds, compared to the ideal 10-minute target. This slowdown suggests a decrease in network competition, which aligns with the recent hashrate decline as network data shows.

How Did the Difficulty Adjustment Affect Miners in Early 2026?

The January 8 difficulty adjustment reduced the threshold for finding blocks by 1.2%, marking the first change of 2026 according to network reports. This adjustment followed a period of four difficulty declines since October 29, when difficulty reached a peak of 155.97 trillion. As of January 17, the difficulty stands at 146.47 trillion, a reduction of 9.5 trillion since that peak.

This adjustment has improved the breakeven economics for miners. JPMorgan analysts noted that the hashrate decline has reduced competitive pressure, while Bitcoin’s price has seen a modest rise, increasing daily revenue per exahash according to JPMorgan analysis. The bank estimates gross mining margins improved by roughly 300 basis points in early 2026 to about 47% according to financial data.

What Are Analysts Watching Next?

Industry watchers are closely following the next difficulty adjustment on January 22, which is expected to further ease the computational burden as reported. If the hashrate continues to trend downward, the projected 5.45% difficulty reduction could provide a more sustained relief for miners. This would help reduce costs and improve efficiency as the year progresses.

At the same time, analysts are monitoring Bitcoin’s price and fee structure. While block rewards account for nearly all mining revenue, fees have remained below 1% of total block rewards in recent days according to network data. JPMorgan highlighted that further efficiency gains and disciplined capital deployment will be crucial for mining firms to remain profitable according to JPMorgan analysis.

The recent drop in hashrate may signal a temporary recalibration in the Bitcoin network. Whether this trend continues will depend on Bitcoin’s ability to maintain its price and the broader economic environment for miners according to industry analysis.