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Grid Wars: Bitcoin Hashrate Drops As AI Demands More Electricity

By Bitcoinist
Jan 20, 2026
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Bitcoin’s network power dipped this week, falling back under the one-zettahash mark after several months above it. Reports show the seven-day average hashrate near 993 EH/s, a clear pullback from last year’s highs.

Hunger For Power

Reports say big AI data centers are buying long-term power contracts and willing to pay more for steady, round-the-clock electricity, pushing some miners to cut or shift operations. This competition has changed who gets the cheapest power on the grid.

Why The Shift Matters Now

Electricity is the single biggest cost for mining. When data centers bid for the same megawatts, miners face a straight choice: pay more, accept narrower margins, or repurpose capacity.

Bitcoin Hashrate Alert: A Shift in the Mining Landscape

For the first time since Sept 2025, BTC’s 7-day average hashrate has fallen below 1 ZH/s. A -4.34% difficulty adjustment is expected in ~3 days.

What’s driving the exodus?

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The network’s difficulty has been eased a bit by the drop in hashpower, which keeps block times roughly steady, but that mechanical fix does not change who holds the power contracts.

The plan asks large new power users to take responsibility for their own supply or accept curtailment rules so essential services and homes do not face outages. These moves are meant to limit the strain that rapid AI growth could place on the system.

 

Bitcoin Vs. AI: Policy Moves And Political Pressure

The pressure reflects worry about higher bills and the risk that expanding data centers could crowd out other users.

What Miners Are Doing To Stay Alive

Many operators are not only shutting rigs when power gets costly; they are retrofitting sites to host GPUs and other AI hardware.

That change can mean steadier revenue and longer contracts than mining alone would offer. It also signals a structural shift: bitcoin mining is becoming one part of a broader compute business for some companies.

Block rewards and protocol rules still secure the network. But if hashrate stays lower for a long stretch, planners and investors will watch whether centralization rises in places where power stays cheap.

For everyday users, the system keeps producing blocks; for miners, the contest for electricity is now a defining business problem.

Featured image from Unsplash, chart from TradingView

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of BitKan. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. BitKan shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. Products mentioned in this article may not be available in your region.

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