Bitcoin's computing power has pulled back roughly 15% from the October high, with miners continuing to face pressure—we're now in the 60th day of capitulation. What's more telling is the mining difficulty adjustment scheduled for January 22nd, which is expected to drop about 4% to around 139T. This marks the seventh consecutive negative adjustment over the past eight cycles, signaling sustained weakness in the mining ecosystem.

From a market perspective, this creates real consequences. Marginal miners—those operating on thin margins—are increasingly forced into a corner. Some will have to power down operations entirely, while others might resort to liquidating Bitcoin holdings to cover operational costs. It's a classic squeeze that separates the efficient miners from the rest.