Bitcoin tests critical support as ETF outflows and mining struggles intensify

Bitcoin faced another turbulent week as spot ETFs saw nearly $296 million in net outflows, breaking a four-week streak of inflows. The cryptocurrency is now testing a critical support zone between $65,500 and $66,000, with analysts warning of further potential declines if this level fails to hold.

Meanwhile, the Bitcoin network's hash rate has dropped sharply from its peak, reflecting broader struggles in mining profitability and market sentiment.

The Bitcoin network's hash rate hit a high of around 1,160 EH/s in early October 2025 before falling to roughly 850 EH/s by early February 2026. As of March 23, 2026, it has partially recovered to a seven-day average of 967 EH/s, though this remains about 17–22% below its peak.

Several factors have driven the decline. The **hash price**—a key measure of mining profitability—fell from a peak of around **$63 per PH/s/day** in July 2025 to just **$33.65** by early 2026. With Bitcoin trading near **$70,000**, many miners faced unprofitable conditions, leading to widespread capitulation. Severe storms in North America, rising competition from AI computing, and multiple negative difficulty adjustments—including a **7.76% drop on March 20**—added further pressure. On March 27, Bitcoin futures contracts worth approximately **$13.45 billion** expired, causing open interest to plummet by **42%**. Goldman Sachs analysts noted that trading volumes remain persistently low, increasing the risk of short-term volatility. The firm also highlighted that Bitcoin's **45% decline** aligns with past bear market cycles, though it maintains buy ratings on crypto-adjacent stocks like **Coinbase** and **Robinhood**. Mining economics have worsened, with average production costs nearing **$80,000 per Bitcoin**—well above current prices. The **50-day exponential moving average**, sitting around **$72,000**, remains significantly higher than Bitcoin's present value. If the cryptocurrency breaks below the **$65,500–$66,000** support range, analysts suggest it could slide toward **$60,000–$62,000**. Despite the downturn, **GameStop** continues to hold **4,710 BTC**, valued at roughly **$368 million**, with nearly all of it pledged as collateral for an options strategy via **Coinbase Credit**.

Bitcoin's recent struggles reflect a combination of declining miner profitability, low trading volumes, and macroeconomic pressures. With key support levels under threat and production costs exceeding market prices, further volatility appears likely.

The network's hash rate recovery remains sluggish, while institutional players like Goldman Sachs continue to monitor the market for signs of stabilisation or deeper corrections.