Rally Reverses, Hashrate Holds High, Macro Policy in Focus

Bitcoin Hashrate Market Weekly Report (Aug 16 – Aug 22, 2025)

Key Takeaways

• Price: After hitting a record high of ~$125,500 last week, Bitcoin pulled back this week, briefly dipping to ~$115,000 mid-week, about 7% below the peak. By the weekend, BTC hovered around ~$113,000 with heightened volatility.
• Hashrate: The network hashrate stayed elevated, fluctuating between 900 EH/s and 950 EH/s, marking near-record levels.
• Difficulty: Difficulty: Current mining difficulty stands at 129.44 T, hitting an all-time high.
  The last adjustment (Aug 8) saw an increase of +1.42%; the next adjustment is expected around Aug 24, with a projected decrease of ~0.38%.
• Macro: At the Jackson Hole Symposium, Fed officials balanced inflation risks with slowing employment. The probability of a September rate cut dropped to ~70%, leaving markets cautious.
• Industry: The U.S. raised tariffs on mining rigs, with CleanSpark ($185M) and Iris Energy ($100M) facing retroactive tax liabilities. Meanwhile, major miners posted strong earnings: Marathon and Riot showed substantial profitability gains. Green Minting secured $150M to build a 600MW green mining facility.

I. Market Overview

1) BTC Price Trends
Bitcoin traded in a choppy downtrend this week after last week’s highs, correcting by ~10% overall. Volatility increased, largely driven by macroeconomic news.

2) Network Hashrate
The Bitcoin hashrate averaged 935.85 EH/s this week, with a peak near 950 EH/s and a trough around 900 EH/s. Elevated hashrate underscores strong network security and miner commitment, though minor dips indicate temporary shutdowns of less efficient rigs due to margin pressures or rising energy costs.

3) Mining Difficulty
Bitcoin’s current difficulty is 129.44 T, a record high. The last adjustment on Aug 8 increased difficulty by +1.42%. The next adjustment, expected around Aug 24, is projected to decrease by ~0.38%, providing partial relief for miners.

II. Market In-Depth Analysis

1) Price–Mining Output Dynamics
The interplay between Bitcoin’s price and network difficulty was evident this week. While prior price gains boosted block rewards in fiat terms, the continued climb in difficulty offset profitability. As BTC prices corrected, marginal miners—those at break-even thresholds—saw profits squeezed, forcing inefficient rigs offline.

2) Hashrate Trend Analysis
Short-term hashrate declines reflect miners’ rapid responses to profitability shifts. After the difficulty hike, some outdated or power-hungry rigs were shut down, briefly lowering hashrate. Nonetheless, the long-term trend remains upward, fueled by expansions and hardware upgrades. The network’s auto-adjustment ensures stable block intervals.

3) Cloud Mining Market Prices
Cloud mining contracts saw moderate price pullbacks this week. Some providers discounted unit mining rates by ~4%. If BTC holds firm and difficulty eases as projected, short-term demand for cloud mining products should stay resilient.

III. News & Events

The Jackson Hole Symposium highlighted the Fed’s delicate balancing act. Inflation remains above target, while the labor market showed cooling signs. According to CME FedWatch, markets assign a ~70% probability of a September rate cut, but expect gradual and cautious easing.

U.S. economic data was mixed: July CPI rose 2.7% YoY, with core inflation at 3.1%, both above target. Meanwhile, initial jobless claims climbed to 235k, with continuing claims at a four-year high, underscoring labor market weakness. Diverging signals add uncertainty to the Fed’s policy path, though markets lean toward a September cut if inflation avoids surprises.

In the mining industry, the U.S. sharply raised import tariffs on mining rigs—57.6% for Chinese-made rigs and 21.6% for some Southeast Asian models. This left CleanSpark and Iris Energy with ~$185M and ~$100M in retroactive tax liabilities, respectively, potentially impacting expansion plans. At the same time, industry growth continues: Green Minting raised $150M to build a 600MW green mining farm targeting 32.7 EH/s and exploring AI compute support. Earnings reports from major miners showed strength: Marathon’s Q2 revenue surged 64% YoY to $238M with net income at $808M, while Riot doubled revenue to $153M and posted $220M net income. Despite regulatory headwinds, industry leaders are leveraging scale and capital to accelerate expansion.