For the first time in over three months, the Bitcoin network hashpower has retreated from its historic 1 zettahash (ZH/s) milestone, signaling a critical shift in the mining landscape. As of Sunday, January 18, 2026, data confirms the total computational power securing the network has dipped to 988 EH/s, snapping a 90-day streak of operations above the zettahash barrier. This decline is not merely a technical fluctuation but a direct symptom of a severe miner profitability squeeze that is forcing operators to unplug older machines ahead of a crucial difficulty adjustment.
The Zettahash Retreat: A Historic Pullback
Since mid-October 2025, the Bitcoin network had seemingly cemented its position in the "Zettahash Era," consistently maintaining over 1,000 exahashes per second (EH/s). The recent drop to 988 EH/s represents a significant recalibration. Market analysts point to this Bitcoin hashrate drop as a rational economic response to tightening margins.
The psychological impact of losing the 1 zettahash BTC handle is notable, yet industry veterans view it as a healthy flush of inefficiency. "The network is shedding excess weight," notes a lead analyst from Hashrate Index. "What we are seeing is the capitulation of less efficient hardware that simply cannot sustain operations at current revenue levels."
Miner Profitability Squeeze and the Hashprice Factor
The primary driver behind this exodus of hashrate is the collapsing "hashprice"—the expected revenue for one petahash of computing power. After peaking near $50 per petahash/second (PH/s) in late 2025, the hashprice has faced extreme volatility, recently hovering around the $41 mark. This erratic revenue stream has collided with rising crypto mining operating costs, particularly energy rates which typically spike during winter months in the Northern Hemisphere.
For miners operating older generation rigs, this math no longer works. The "shut-down price"—the Bitcoin price at which mining costs exceed revenue—has been breached for several tiers of hardware, triggering an immediate disconnect from the network. This creates a feedback loop: as unprofitable miners exit, the total Bitcoin network hashpower declines, theoretically increasing the slice of the pie for those who remain.
Bitcoin Difficulty Adjustment Jan 2026: Relief on the Horizon?
All eyes are now fixed on the upcoming Bitcoin difficulty adjustment Jan 2026, slated for roughly January 22. With the hashrate falling and block production times slowing to an average of 10 minutes and 34 seconds, the network is projected to undergo a downward difficulty adjustment of approximately 5.45%.
This projected drop is a critical mechanism of the Bitcoin protocol, designed to keep block issuance steady. For surviving miners, it offers a glimmer of hope. A 5.45% reduction in difficulty effectively lowers the cost of production, potentially widening profit margins just enough to stabilize the industry. However, this relief is contingent on the Bitcoin hashrate drop sustaining itself through the adjustment epoch.
The Efficiency Imperative
The current landscape highlights a brutal Darwinian reality: efficiency is the only hedge against volatility. While the aggregate hashrate has slipped, the efficiency of the remaining fleet has likely hit an all-time high. Large-scale public miners are aggressively deploying next-generation rigs that boast efficiency ratings under 15 J/TH (joules per terahash), rendering the miner profitability squeeze manageable for them while catastrophic for inefficient operators.
News from the Hashprice Index
Recent Hashprice index news suggests that while the immediate outlook is challenging, the clearing of the 1 ZH/s level may mark a local bottom. If the projected difficulty drop materializes as expected next week, and Bitcoin price action remains stable or bullish, the "survivor" miners could see a rapid improvement in balance sheets by February. Until then, the battle for the zettahash mark remains a tug-of-war between raw computational ambition and the hard reality of operating economics.
