After a weather-driven mining shock knocked millions of machines offline, the network’s computing power has roared back, signaling renewed miner confidence even as prices lag behind.
Bitcoin’s underlying infrastructure is flashing signs of resilience — and possibly a turning point.
The network’s hashrate, the measure of total computational power securing Bitcoin, staged a dramatic V-shaped recovery in February after suffering one of the sharpest declines in recent years. The rebound has reignited optimism that the world’s largest cryptocurrency could soon break out of its five-month slump.
From Deep Freeze to Digital Reawakening
The earlier collapse wasn’t triggered by markets or regulation — but by weather.
An extreme Arctic cold wave swept across the United States in early 2026, straining energy grids as heating demand surged. Authorities issued conservation requests, localized blackouts hit several regions, and energy-intensive Bitcoin mining operations were forced to power down en masse.
According to data tracked by CryptoQuant, the network’s hashrate plunged by roughly 30%, with an estimated 1.3 million mining rigs going offline, slowing block production and rattling investor sentiment.
But by February, the data told a very different story.
Hashrate surged from below 850 EH/s to above 1 zettahash per second (ZH/s) — a near-complete reversal of the earlier decline.
Mining Just Got Harder — Much Harder
The return of computing power didn’t just restore the network; it intensified competition.
A developer affiliated with Mempool noted that mining difficulty jumped by roughly 15%, marking the largest absolute increase ever recorded and effectively erasing the previous downturn.
That kind of adjustment signals one thing: miners are coming back online fast — and betting on long-term profitability.
Yet Bitcoin’s Price Isn’t Following… For Now
Despite the infrastructure rebound, Bitcoin’s market price remains stuck below the $70,000 mark, creating a puzzling divergence between network strength and investor behavior.
Research cited by Hedgeye estimates that the average cost to mine one Bitcoin in February sits near $84,000, meaning many miners are currently operating underwater.
That hasn’t stopped them from restarting machines — a sign that operators expect future price appreciation to justify today’s thinner margins.
Why Hashrate Often Leads Price
Historically, Bitcoin’s hashrate has functioned as a leading indicator rather than a lagging one.
Data compiled by Blockchain.com shows that previous V-shaped recoveries in computational power frequently preceded major rallies.
One of the clearest parallels came in mid-2021, when China’s sweeping mining ban caused hashrate to collapse by more than 50%. After miners relocated and capacity recovered, Bitcoin surged from roughly $30,000 to over $60,000 within months.
Veteran market participants see echoes of that pattern today.
“Miner confidence remains intact and they are coming back online,” one long-time Bitcoin observer said. “Historically, hashrate is a leading indicator during recoveries. Price tends to follow.”
Miners Are Selling Less — Another Bullish Clue
Additional on-chain signals reinforce the narrative of cautious optimism.
Seven-day average outflows from miner wallets — a proxy for how aggressively miners are selling newly mined coins — have dropped to their lowest level since May 2023, according to CryptoQuant.
That suggests miners are holding onto their Bitcoin rather than liquidating it, anticipating higher prices ahead.
The Missing Piece: A Technical Breakout
Analysts say infrastructure recovery alone isn’t enough to confirm a full market reversal.
Research highlighted by BeInCrypto points to a critical resistance level near $71,693. A sustained breakout above that threshold could validate the bullish signals coming from mining data.
Until then, Bitcoin remains in a transitional phase — strong beneath the surface, but still searching for momentum in price charts.
A Network That Refuses to Stay Down
The February rebound underscores a defining characteristic of Bitcoin: its ability to adapt quickly to shocks, whether regulatory, geopolitical, or even meteorological.
While traders debate short-term price action, the machines securing the network are humming back to life — faster and more powerful than before.
If history is any guide, markets may eventually catch up to what miners already seem to believe:
The recovery may have started long before investors notice it.