Bitcoin miners across the United States are rapidly cutting operational capacity amid a powerful winter storm that is wreaking havoc nationwide.
With extreme cold pushing national power demand to critical levels and regulators urging conservation, mining firms have dramatically reduced production, intensifying fears that these disruptions may be signaling deeper bearish pressure across the crypto market.
Miners Slash Output as Hashrate Drops 32%
CryptoQuant founder Ki Young Ju revealed in a recent X post that Bitcoin mining companies have sharply reduced production to support the strained US power grid amid a brutal winter storm. According to Ju, the Bitcoin network hashrate has plunged by 32% over the past three days, indicating one of the steepest weather-driven drops in recent cycles.
The production cuts also coincide with renewed fears that the US government could face another shutdown by January 31, 2026, adding a fresh layer of uncertainty to an already fragile market environment.
Interestingly, fresh CryptoQuant data highlights steep reductions across several top mining firms. Marathon Digital (MARA), the second-largest BTC-holding public mining company, saw its operational throughput collapse from 45 to 7.
CleanSpark (CLSK) also experienced a notable slowdown, with its output dropping from 22 to 12. Further, Iris Energy (IREN) reduced production from 18 to 6, and Riot Platforms (RIOT) recorded one of the deepest declines, with its BTC production slumping from 16 to 3.
Meanwhile, the ongoing winter storm has also triggered a widespread blackout, leaving over 819,000 homes and businesses across the United States without power. This worsening energy crisis has forced regulators to issue conservation alerts, prompting miners to curtail operations even more aggressively
Stablecoin Outflows and Whale Pivot to Gold Deepen Bearish Signals
Amid declining BTC production, another development intensifying bearish sentiment is the continued drop in stablecoin market capitalization. According to a CryptoQuant analyst, this trend is a strong negative signal, as shrinking stablecoin liquidity often indicates investors are withdrawing capital from the crypto ecosystem rather than preparing to re-enter risk markets.
Meanwhile, interest in safe-haven assets like gold continues to rise sharply. Interestingly, on-chain sleuth Lookonchain hinted at a notable surge in gold-related investor activity. The on-chain sleuth also flagged the transaction of an unknown whale who lost $18.8 million trading ETH in just two weeks.
In response, the whale pivoted to gold and has, since December 13, 2025, spent $36.04 million to accumulate the precious metal. The shift appears profitable, with the investor sitting on an unrealized gain of $2.3 million. Analysts say the move reflects broader caution among large crypto holders navigating rising volatility.
Price Action: Bitcoin Eyes Massive Rally
Amid mounting volatility, Bitcoin has now erased almost all its year-to-date gains. According to CoinMarketCap, BTC is down 0.74% over the past 24 hours, trading around $87,000 as miners reduce output and liquidity across crypto thins.
Despite the weak performance, market expert Ted Pillows suggested in a recent X post that BTC could be positioning for a massive rally, driven by speculation over a potential yen intervention. He noted that during the last intervention, Bitcoin fell 29% before surging 100%, doubling in value. If history repeats, BTC may be heading toward a new all-time high.
Evans Kelvin
The CoinRemark Team
