Bitcoin Plunges into Uncharted Territory as Miners Abandon Traditional Mining

Twenty One Capital CEO Rapha Zagury said Bitcoin is experiencing its first-ever hashrate bear market, marking a shift from traditional mining to AI and HPC. The network's hashrate peaked near 1.3 zettahashes late last year before beginning a prolonged decline.

This marks the longest stretch between an all-time high in hashrate and a full recovery on record for Bitcoin.

According to Zagury, nearly all publicly listed mining companies are exiting large-scale Bitcoin mining in favor of AI and HPC infrastructure.