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

According to CoinDesk, the conflict in the Middle East leading to rising oil prices has caused a significant drop in Bitcoin's hash rate, putting pressure on miners and the overall market.

In the past week, the network hash rate has decreased by about 8%, to 920 EH/s, suggesting a possible entry into a new phase 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 volatility in mining activity.

Analysis indicates that the pressure faced by miners stems from intensified competition, persistently low transaction fees, and Bitcoin price fluctuations, which have compressed profit margins. Many publicly 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.