AI computing power race continues to escalate: Analysts say AI is diverting resources, Bitcoin hash rate drops to four-month lows

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BTC4,56%

January 19 News, Bitcoin network hash rate has recently experienced a significant decline, falling below 1000 EH/s for the first time since mid-September 2025, sparking widespread market attention on the “reasons for Bitcoin hash rate decline” and the “artificial intelligence computing power competition.” Several industry analysts pointed out that the continuous surge in AI demand is actively diverting resources from Bitcoin mining.

According to the latest data from Hashrate Index, the seven-day moving average of Bitcoin’s total network hash rate has dropped to approximately 993 EH/s, having briefly fallen below the 1 ZH/s threshold. Compared to the peak of about 1157 EH/s reached in mid-October 2025, the current hash rate has decreased by nearly 15%, reaching a low in nearly four months.

Leon Lyu, CEO and founder of StandardHash, analyzed on the X platform that the decline in hash rate is not due to technical issues but is a proactive adjustment by miners under profit pressure. As demand for AI and high-performance computing rapidly expands, some Bitcoin miners are reallocating hash rate, electricity, and cooling resources to AI computing services with higher returns and more stable cash flow. “Artificial intelligence is no longer just a concept; it is competing with Bitcoin mining for power grid and hardware resources in reality.”

Earlier industry research indicated that, influenced by Bitcoin price fluctuations, rising financing costs, and increased operational expenses, the overall profitability environment of the mining industry significantly tightened in 2025. Against this backdrop, large-scale mining farms with infrastructure advantages are accelerating the exploration of diversified revenue models, with AI computing power becoming one of the key directions.

Leon Lyu also reminded that the currently disclosed network hash rate may be underestimated. He believes that leading mining hardware manufacturer Bitmain may have secretly collaborated to put some existing equipment into operation, making the actual hash rate higher than the reported data. However, even so, the trend of net hash rate outflow still reflects the reality of miners’ profit pressures.

Although Bitcoin mining difficulty has been adjusted downward multiple times since November 2025, and the hash price has shown some recovery, before prices develop sustained upward momentum, the attraction of AI for hash rate will continue to reshape the Bitcoin mining landscape.

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