Bitcoin network hashrate has failed to recover for an extended period since reaching a peak late last year, prompting analysis that structural changes in the mining industry are gaining momentum.
Rafael Zagury, CEO of Twenty One Capital, said at Bitcoin Asia 2026 that Bitcoin is experiencing its first-ever “hashrate bear market.” He explained that the hashrate, which approached approximately 1.3 ZH/s late last year, has continued to decline, making the period without a return to its previous record high one of the longest on record.
He stressed that the current situation differs from China’s 2021 mining ban. At the time, mining equipment moved to other countries and the hashrate recovered. Now, however, AI and high-performance computing (HPC) are competing with Bitcoin mining for electricity and data-center infrastructure. A significant number of publicly listed mining companies are also shifting to AI businesses, indicating that a structural reorganization of the mining industry is under way.