For the first time in six years, Bitcoin's hashrate declined during the first quarter, marking a significant shift in the cryptocurrency's network security landscape. According to reports from CoinDesk, the hashrate is currently down around 4% year to date, hovering around 1 zettahash per second (ZH/s). This represents the first first-quarter decline since 2020, following five consecutive years of double-digit growth. Over the past five years, the rate has surged from roughly 100 exahashes per second (EH/s), representing a 10-fold increase according to Glassnode data.
Despite current market challenges, Bernstein analyst Gautam Chhugani believes Bitcoin has bottomed and reiterated a $150,000 price target by the end of the year, implying more than 100% upside potential. As reported by The Motley Fool, Chhugani views the recent sell-off as a temporary reset, noting they haven't observed systemic stress as in past crypto bear markets. Bitcoin currently trades at approximately $67,062 as of March 30, 2026, stabilizing after a sharp pullback from recent highs near $72,000, representing a nearly 46% decline from its all-time high of $126,199. The analyst notes that Bitcoin has actually outperformed gold since the Iran war began, with the bull case resting on its finite maximum supply of 21 million coins making it a form of digital gold.
In a significant development for Ethereum's network security, the Ethereum Foundation executed a monumental $46.2 million ETH staking move on the Beacon Chain, representing a major commitment to network stability. According to BitcoinWorld, this transaction involved 22,517 ETH and could fund over 700 validators through the staking process. The Beacon Chain, launched in December 2020, introduced Ethereum's proof-of-stake system and merged with the Mainnet in September 2022 to complete the network's transition. This staking move effectively removes ETH from circulating supply, potentially creating upward price pressure if demand remains constant or increases. The foundation's move demonstrates protocol-aligned commitment and contrasts with primarily financial motives of exchange and staking service validators.
The shift reflects deteriorating economics across the bitcoin mining sector, with production costs near $90,000 per bitcoin and the spot price closer to $70,000, creating negative margins. As reported by CoinDesk, many publicly listed miners are responding by switching to artificial intelligence and high-performance computing infrastructure, where returns are higher and more predictable. This transition is being funded through debt issuance and bitcoin sales, reducing reinvestment into bitcoin mining and making hashrate growth more sensitive to cryptocurrency price movements. Large wallet holders have been actively rotating positions—accumulating during sharp declines but also distributing into price strength, creating a pattern where rallies are quickly sold into, capping upside potential.
Spot Bitcoin ETFs recorded net outflows of $296.18 million for the week ending Friday, breaking a four-week inflow streak of over $2.2 billion. According to The Economic Times, this represents a significant shift in institutional sentiment after the strong inflow period. The global crypto market capitalisation went up 0.86% to $2.32 trillion, with experts suggesting that a full recovery to all-time highs might extend to Q2 2027, depending on the depth of the current correction. The rise in bullish leverage positions across derivatives markets has created conditions for sharper downside moves when sentiment shifts, amplifying volatility within a still constructive long-term framework. Whale activity is amplifying short-term volatility and shaping price direction more aggressively, with some large holders shifting funds toward artificial intelligence-related investments.
Despite current challenges, institutional interest in Bitcoin remains a big part of the equation, with higher ETF flows observed more recently and traditional banks offering crypto services. As reported by The Motley Fool, Bernstein analysts remain bullish on Bitcoin treasury company Strategy, which holds 3.6% of all the coins in circulation. Chhugani sees Strategy as a high-beta substitute for Bitcoin with a balance sheet that is "resilient, liquid and pressure-tested." The analysts note that Bitcoin has endured many significant sell-offs in its short life, some of as much as 90%, with every previous correction followed by recovery and new highs, suggesting potential for strong long-term returns despite current volatility. Policy comments are amplifying volatility rather than reducing it, with statements emphasizing military dominance and regional restructuring creating sharp intraday swings, while strong policy messaging supporting digital assets continues to reinforce long-term bullish expectations.
