Bitcoin enters first hashrate bear market, Twenty One Capital CEO says

Bitcoin's network hash rate is declining as large miners shift computing resources toward artificial intelligence applications, according to Twenty One Capital CEO Raphael Zagury. This shift marks what the executive describes as the first "hash-rate bear market" in the network's history - a sustained period where mining capacity is being redirected away from Bitcoin validation and toward more lucrative AI workloads.

The move reflects broader economic pressures on the mining sector, where operators are apparently finding greater returns in AI-related computation than in traditional Bitcoin block production.

• Miners are reallocating hash rate capacity from Bitcoin to AI, driven by economic incentives favoring the latter.
• This represents the first documented instance of a prolonged network hash rate decline, termed a "hash-rate bear market" by industry observers.
• The shift underscores competitive pressure between blockchain and AI computing for access to high-performance hardware resources.