Twenty One Capital CEO says Bitcoin enters first hash-rate bear market

Raphael Zagury, CEO of U.S.-listed Bitcoin accumulation company Twenty One Capital (XXI), said Bitcoin is going through its first-ever hash-rate bear market, according to Wu Blockchain. Zagury said the Bitcoin network’s hash rate climbed to nearly 1.3 ZH/s late last year and has declined steadily since then. He said the current stretch is already the longest period so far for the hash rate to recover after hitting a record high. He added the current situation differs from the hash-rate decline that followed China’s 2021 ban on cryptocurrency mining. At the time, mining companies mainly relocated to other regions and the hash rate gradually recovered, he said. Zagury said the Bitcoin mining industry is now competing with new infrastructure tied to AI and high-performance computing, and almost all publicly listed miners are shifting away from Bitcoin mining and toward AI.