Bitcoin’s network hashrate dropped sharply over the weekend as a major winter storm swept across the United States, briefly returning the network to mid-2025 levels.
Data from CoinWarz shows that from Friday to Sunday, total computing power fell from roughly 1,120 exahashes per second (EH/s) to 663 EH/s, a decline of more than 40%. By Monday, the hashrate had partially recovered to around 854 EH/s.
The storm, which affected 36 states with heavy snow, ice, and widespread power outages, disrupted energy supply to nearly one million customers, according to AccuWeather.
With the United States now accounting for nearly 38% of global Bitcoin mining power, the weather’s impact on mining operations was immediate and pronounced.
“Approximately 40% of global Bitcoin mining capacity has gone offline in the past 24 hours due to extreme winter weather,” said Abundant Mines, a miner based in Oregon.
Miners step in to stabilize the grid
Bitcoin mining’s energy-intensive nature often comes under scrutiny, but its flexibility can support local power systems during periods of stress. Many mining operations are capable of adjusting electricity consumption almost instantly, effectively acting as controllable loads that respond to grid conditions.
Facilities situated near renewable energy sites, such as wind or solar farms, can absorb surplus generation when supply exceeds demand and pause operations when the grid is under strain.
“As energy demand surges, some operations reduce activity to ease pressure on regional power systems. This flexibility is a built-in strength of Bitcoin mining. Miners can scale down quickly when needed and resume just as fast once conditions improve.”
In Texas, for example, demand-response mechanisms combined with Bitcoin mining helped stabilize the grid amid extreme weather, according to environmental, social, and governance researcher Daniel Batten.
Such adjustments demonstrate a practical, if underappreciated, interaction between energy markets and cryptocurrency infrastructure.
Production drops reflect real-time challenges
The storm also slowed Bitcoin production for some of the US’s largest miners. CryptoQuant analytics reported that Marathon Digital Holdings mined seven Bitcoin on Sunday, down from 45 the day before, while IREN dropped from 18 to six.
These reductions illustrate the direct operational impact of both environmental events and energy curtailments on block production.
High mining difficulty adds pressure
Even before the storm, Bitcoin miners were navigating a challenging environment. Mining difficulty, a measure of how hard it is to solve a block, ended 2025 near record highs and is set to rise again in early January 2026. The most recent adjustment brought difficulty to 148.2 trillion, with projections placing the next recalibration around 149 trillion.
Average block times are hovering around 9.95 minutes, slightly below Bitcoin’s 10-minute target. Faster block production prompts automatic difficulty increases to restore balance, keeping issuance steady. Sustained high difficulty requires more computing power and energy to earn the same block rewards, intensifying the pressure on miners during periods of price volatility.
Difficulty adjustments also help maintain decentralization. Without them, operators with large amounts of computing power could dominate block production, concentrating influence and potentially distorting incentives. By scaling difficulty to total network hashrate, Bitcoin preserves the predictable issuance schedule and protects against undue concentration of mining power.
Market dynamics
While miners adjust to environmental and technical challenges, market behavior has shown signs of stabilization. On-chain data indicates that long-term Bitcoin holders, those holding coins for at least 155 days, have slowed their selling, marking the first sustained pause since July 2025.
Total balances among these wallets declined from roughly 14.8 million BTC in mid-July to 14.3 million by December, after which outflows moderated sharply.
Ethereum has seen a contrasting trend. Large Ether holders, defined as wallets with at least 1,000 ETH, have added approximately 120,000 Ether since December 26, 2025. These addresses now control nearly 70% of Ethereum’s circulating supply, continuing an accumulation pattern that has been building since late 2024. Historical trends suggest periods of concentrated accumulation often precede improved price performance, though broader macro conditions remain a limiting factor.
Holiday volatility has kept traders cautious. Bitcoin’s price traded between roughly $86,700 and $90,000 over the past week, with some selling pressure concentrated during US trading hours.
Data from CoinGlass shows the Coinbase Bitcoin Premium Index remained negative, signaling lower domestic demand relative to offshore exchanges. Analysts note that thin liquidity during the holidays tends to amplify price swings and reinforce defensive trading behavior.
Tanya Petrusenko
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