Bitcoin News Today: Bitcoin’s Decentralization Dream at Risk as Two Pools Control 51% of Hashrate

Bitcoin’s recent price rally may be heading toward a potential collapse as analysts warn of accumulating risks, including increasing centralization in mining and macroeconomic pressures. With the cryptocurrency’s price hovering near a critical support level of $110,530, concerns are rising over structural vulnerabilities that could undermine its long-term viability. Foundry USA and AntPool now control over 51% of the Bitcoin network’s hashrate, the highest concentration seen in over a decade. This level of mining centralization raises the theoretical possibility of a 51% attack, a scenario in which a single entity could manipulate the blockchain by reversing transactions, double-spending, or disrupting the network’s integrity. Jacob King, an analyst, noted that Foundry holds a 33.63% share of the hashrate, while AntPool accounts for 17.94%. Combined, they control more than half the network’s processing power, a development that challenges Bitcoin’s foundational principle of decentralization [1].

The dominance of a few large mining pools has already led to unusual activity on the network. For example, Foundry USA recently mined eight consecutive blocks, an occurrence described as highly improbable in a decentralized system. This pattern suggests a growing imbalance in mining power distribution, which could erode trust in the network’s security and transaction efficiency. Additionally, the rise in "empty blocks"—blocks that contain no transactions—highlights a trend where miners prioritize speed over profitability, potentially reducing network revenue and user confidence [1].

Beyond mining centralization, Bitcoin faces macroeconomic headwinds that could exacerbate its vulnerability. The Federal Reserve’s monetary policy, including the potential for rate cuts, remains a critical factor shaping investor sentiment. With the Fed’s chair, Jerome Powell, preparing to deliver a key speech at the Jackson Hole Economic Symposium, market participants are closely watching for hints about future rate direction. Analysts warn that prolonged uncertainty around Fed policy could contribute to a "spiral of doom" for the broader crypto market, particularly if rate cuts are delayed or if inflationary pressures persist [3]. Additionally, recent regulatory changes, including the passage of the Genius Act stablecoin bill, have introduced new risks to the ecosystem, with fears of a $6.6 trillion stablecoin withdrawal posing systemic threats to the entire financial system [1].

Bitcoin’s current price dynamics reflect the growing unease. Traders are closely monitoring the $110,530 support level, with bearish momentum evident in technical indicators such as the relative strength index and 20-day moving average. A breakdown below this level could signal further declines toward $107,000 or even $100,000, while a rebound above $110,530 might push the price toward $120,000. However, the centralization of mining power and macroeconomic factors have added psychological pressure to the market, reducing the likelihood of a sustained upward trend in the near term [1].

The implications of a potential Bitcoin collapse extend far beyond the crypto market. With a market capitalization of $2.31 trillion and growing exposure in institutional portfolios, retirement accounts, and exchange-traded funds, a total collapse of Bitcoin’s value could trigger a financial crisis on a scale exceeding the 2008 downturn. Kevin Rusher, founder of RAAC, stated that a crash to zero would create a crisis "magnitudes bigger than 2008/2009," given the increased scale of the market and the widespread integration of Bitcoin into the global financial system [2]. A collapse would not only wipe out significant wealth for millions of individual and institutional investors but could also lead to a broader loss of confidence in financial markets, particularly among younger investors.

Regulators and lawmakers may also face increased pressure to intervene in the aftermath of a crash. Investors who lose money may seek accountability, potentially leading to stricter regulations on crypto exchanges, investment products, and fund management practices. This regulatory response could reshape the industry and alter the landscape of digital asset investment. Additionally, a Bitcoin crash could trigger a reevaluation of the Proof-of-Work (PoW) consensus mechanism, as its vulnerabilities—such as the risk of a 51% attack—come under scrutiny. If PoW is deemed unsuitable for a global financial system, alternative consensus models may gain traction, further complicating the long-term trajectory of Bitcoin and other cryptocurrencies [1].

Source:

[1] Bitcoin Mining Centralization Reaches Decade High as Two Pools Control 51 of Hashrate (https://blockonomi.com/bitcoin-mining-centralization-reaches-decade-high-as-two-pools-control-51-of-hashrate/)

[2] What Would Happen If Bitcoin Totally Crashed? (https://finance.yahoo.com/news/happen-bitcoin-totally-crashed-212409834.html)

[3] Crypto Is Braced For A Fed Price Bombshell As 'Spiral Of ... (https://www.forbes.com/sites/digital-assets/2025/08/22/serious-spiral-of-doom-strategy-warning-fuels-sudden-bitcoin-price-crash-fears/)