Analysis: The situation in Iran is driving up energy costs, while the decline in Bitcoin hash rate is intensifying pressure on miners

Due to the impact of the Middle East conflict leading to rising oil prices, Bitcoin's hash rate has shown a significant decline, putting pressure on miners and the overall market.

In the past week, the network hash rate dropped by about 8% to 920 EH/s, suggesting a potential new round of miner sell-offs, which is usually accompanied by downward price pressure. The current Bitcoin price is below $72,000, down about 5% from Monday's peak. The network is expected to undergo a hash rate difficulty adjustment of about 8%, marking the second-largest negative adjustment in the past five years. Previously, in mid-February, Bitcoin also experienced a historic significant difficulty adjustment, indicating extreme fluctuations in mining activity. Analysts point out that the pressure faced by miners stems from intensified competition, persistently low transaction fees, and Bitcoin price volatility, which has compressed profit margins. Many listed mining companies have begun to diversify their operations, including AI and high-performance computing, while increasing Bitcoin sales to maintain operations, which also creates some resistance to Bitcoin prices.