Bitcoin’s Resilience Amid Geopolitical Shocks
The price of Bitcoin briefly dipped below $100,000 after news broke of a U.S. strike on Iranian nuclear sites, falling 6% to $98,000 before swiftly rebounding. This quick recovery is significant, as it highlights Bitcoin’s ability to withstand considerable geopolitical shocks. Market volatility may remain heightened as investors watch for further developments in the Middle East and key economic signals—particularly from the U.S. Federal Reserve.
Despite the initial panic, the market’s measured response suggests growing confidence in Bitcoin’s long-term value. As global uncertainty rises, more observers are watching to see if Bitcoin can act as a safe haven or if its volatility will increase amidst international crises.
Miner Revenue Still Dependent on Block Subsidy
Bitcoin miners have seen little relief from transaction fees, which rarely contributed more than 1% of total block rewards in 2025, with few short-lived exceptions. This low fee environment underscores how miner revenue remains largely tied to the block subsidy, the portion of the reward that halves roughly every four years. Without higher demand for on-chain transactions to drive up fees, miners have limited alternative revenue sources.
This situation puts direct pressure on the hashprice—the daily earnings per petahash per second (PH/s) of compute power—which is now tightly correlated with Bitcoin’s spot price movement. When BTC’s price dropped during the recent turmoil, hashprice fell near $50/PH/day, as negligible fee income failed to offset the decline. While Bitcoin’s mining difficulty adjustments can influence hashprice, their impacts are typically less frequent and less pronounced than day-to-day price swings.
Hashrate Volatility, U.S. Dominance, and the Texas Effect
Recent months have seen unprecedented swings in Bitcoin’s global hashrate, which peaked at 929 EH/s in April 2025 and dropped by 12% to 817 EH/s. June was similarly erratic, with a new high at 950 EH/s followed closely by a 13% dip back to 827 EH/s. These rapid fluctuations highlight the changing economics and operational challenges in the mining sector.
The United States continues to account for about 36% of global Bitcoin mining, with Texas emerging as a central hub—providing roughly half of all U.S. hashrate. Texas is popular for its low-cost, abundant energy supply and deregulated electricity market. However, summer heatwaves often force miners to reduce or shut down operations, causing visible drops in hashrate. These seasonal curtailments, driven by electricity demand and grid stress, reveal how local weather and energy market dynamics can shape the global Bitcoin mining landscape.
The full article from Digital Mining Solutions can be found here.
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