Bitcoin Price Shows Signs of Support as Mining Activity Slows

Bitcoin price is facing another period of uncertainty, but fresh data from VanEck suggests the market may be closer to a turning point than many expect. A recent report from the asset manager links falling mining activity to periods that have often been followed by stronger performance over the months ahead.

Bitcoin Mining Slowdown Has Sent Signals Before

In a report published Monday, VanEck said Bitcoin has often posted gains after mining activity declined. 

The firm reviewed data going back to 2014, and found that when the network hashrate was shrinking, Bitcoin returns over the following ninety days were positive about 65% of the time. When hashrate was growing, that figure dropped to fifty four percent.

VanEck said the pattern is linked to miner stress. When prices fall and costs rise, weaker miners are often forced to shut down. This process, known as miner capitulation, reduces the number of coins being sold to cover expenses. 

It is important to add that in past cycles, this shift has helped ease selling pressure and allowed long term holders to regain control of supply.

Mining Pressure Grows as Costs Rise

The current decline in mining activity reflects falling profitability. VanEck pointed to sharp changes in power costs as evidence. For a mid generation machine such as the Antminer S19 XP, the breakeven electricity price fell from about twelve cents per kilowatt hour in late 2024, to roughly seven point seven cents by mid December 2025.

This means only miners with access to cheap electricity can keep operating without losses. As higher cost miners exit, the network adjusts and supply pressure can ease. 

At the same time, Bitcoin price has remained unstable. After reaching a record high of $126,080 last month, Bitcoin fell to around $81,000 on Nov. 21.

Bitcoin Price Finds Buyers During Weakness

Despite pressure on miners, longer term buyers have stepped in. VanEck said digital asset treasuries increased purchases during recent price dips. 

From mid November to mid December, these groups bought about forty two thousand Bitcoin, raising total holdings to roughly one point zero nine million coins. This was the largest monthly increase since mid 2025.

The firm added that many treasuries are changing how they fund purchases. Instead of issuing common shares, some plan to use preference share sales to raise capital. If this demand continues, it could help support Bitcoin price during periods of mining stress and reduced supply.

VanEck said the balance between miners and buyers will remain important in the weeks ahead, as markets watch whether historical patterns linked to mining slowdowns play out again this cycle for Bitcoin price trends.