Hacker's hash rate index at a critical level: Bitcoin price correction threatens mining profitability

The Bitcoin mining industry faces a significant challenge, as evidenced by the decline in the hash rate index. According to CryptoQuant reports, the miners’ profit hash rate index has fallen to a critical level, marking one of the worst periods in the past year. This indicator has become a crucial signal of the turbulent market conditions.

Hash Rate Index Reaches 14-Month Low

ChainCatcher reports confirm that the mining profitability index has dropped to a value of 21, corresponding to the lowest point since November 2024. This ongoing degradation reflects a volatile market situation where miners are struggling with shrinking profit margins. The indicators point to a significant phase where traditionally stable mining operations have become considerably more challenging.

Price Drop and Hash Rate Reduction: Miners Under Double Pressure

The situation is worsened by several interconnected factors. The recent Bitcoin price correction this week has exerted extreme pressure on profit margins. At the same time, the network hash rate has experienced five consecutive decline cycles, reaching one of the lowest levels since September 2025. CryptoQuant analysis emphasizes that this combined effect—lower prices plus higher mining difficulty—has created a perfect storm, causing miner revenues to fall to critical levels.

Deteriorating Conditions: Weather Factors

The challenges faced by the mining sector are not solely due to market dynamics. Recently, a significant winter storm affected the Eastern American region, resulting in ice and snow crises across several states. For many mining operators, this weather disruption has meant additional costs and operational interruptions, on top of already high market pressures. Operational optimization has become an urgent necessity.

Outlook

Overall, the miners’ hash rate index dropping to its lowest level in 14 months indicates a serious market phase. While Bitcoin’s price fluctuates around the $70.46K mark with a slight 24-hour increase, miners are forced to reevaluate their operational models. The future valuation of the mining industry will depend on how the hash rate index and overall market conditions develop in the coming months.