Foundry USA Hashrate Plummets 60% as Winter Storm Disrupts Bitcoin Network

VADODARA, January 26, 2026 — Foundry USA's Bitcoin hashrate has collapsed by approximately 60% since last Friday, according to Cointelegraph, as winter storm Fern batters the United States. This daily crypto analysis reveals that the storm forced roughly 200 EH/s of hash power offline, extending average block times to 12 minutes and exposing critical vulnerabilities in network infrastructure. With power outages affecting over one million households, mining operations face voluntary halts to ease grid strain, raising questions about Bitcoin's resilience to localized shocks.

Investigation: Weather-Induced Mining Disruption

Cointelegraph reports that Foundry USA, a major Bitcoin mining pool, experienced a sharp hashrate decline starting last Friday. Winter storm Fern directly impacted mining facilities, causing slowdowns and power disruptions. Consequently, block generation delays emerged, with the network's average block time stretching to 12 minutes from the standard 10-minute target. Approximately 200 exahashes per second (EH/s) went offline from Foundry USA alone. Mining firms voluntarily paused operations to reduce strain on the power grid, which faced outages across more than one million households. This event highlights how external factors can swiftly alter Bitcoin's computational backbone.

Market Context & Historical Precedent

Historically, Bitcoin mining has faced disruptions from weather events, such as the 2021 Texas freeze that slashed global hashrate by 30%. In contrast, this incident is more localized but persistent infrastructure fragility. Underlying this trend is Bitcoin's Proof-of-Work mechanism, which ties security directly to energy availability. Market structure suggests that such events often create temporary Fair Value Gaps (FVGs) in price action, as liquidity dries up during operational halts. , the current Extreme Fear sentiment, with a score of 20/100, amplifies volatility risks. Related developments include Bitcoin whale holdings hitting a 4-month high, indicating accumulation amid fear, and South Korean prosecutors investigating a phishing attack on seized Bitcoin, reflecting broader security concerns.

Technical Architecture & Price Action

On-chain data indicates that the hashrate drop temporarily reduces network security, potentially increasing the risk of 51% attacks if sustained. Technically, Bitcoin's price at $87,622 faces immediate support at the $85,000 level, a key Fibonacci 0.618 retracement from recent highs. The 24-hour trend of -1.57% aligns with the fear-driven sell-off. Market structure suggests that extended block times can lead to transaction backlog, increasing fees and creating short-term inefficiencies. According to Ethereum.org's documentation on consensus mechanisms, Proof-of-Work networks like Bitcoin are inherently vulnerable to geographic concentration of hash power, a risk highlighted by this event. The 200-day moving average near $82,000 serves as a longer-term support, with a break below signaling deeper correction.

By The Numbers

Why It Matters

This event matters because it exposes Bitcoin's reliance on stable energy grids, a critical flaw for a decentralized asset. Real-world evidence shows that power outages can swiftly degrade network performance, affecting transaction finality and miner profitability. Institutional liquidity cycles may see this as a stress test, with large players monitoring hash rate recovery for signs of resilience. Retail market structure often overreacts to such news, creating liquidity grabs near key support levels. The 5-year horizon suggests that mining decentralization and renewable energy integration become priorities to mitigate similar risks.

Expert Commentary

"While voluntary halts show social responsibility, they reveal Bitcoin's Achilles' heel: geographic hash power concentration. Market analysts note that historical cycles indicate quick recoveries, but sustained outages could trigger deeper price corrections. The CoinMarketBuzz Intelligence Desk emphasizes that on-chain forensic data confirms hash rate volatility often precedes short-term price dislocations."

Market Outlook & Price Scenarios

Market structure suggests two data-backed scenarios based on current conditions. First, a quick recovery in hashrate could stabilize prices, with Bitcoin retesting resistance near $90,000. Second, prolonged disruptions might push prices toward the $82,000 support, aligning with the 200-day moving average.

• Bullish Invalidation Level: $90,000. A break above this resistance would confirm trend reversal, invalidating bearish sentiment driven by the hashrate drop.
• Bearish Invalidation Level: $85,000. Holding this support is critical; a breach could trigger further downside toward $82,000, signaling a deeper correction.

The 12-month institutional outlook remains cautious. If mining operations resume swiftly, network security normalizes, supporting price stability. However, repeated weather events could spur migration to more resilient regions, impacting long-term hash distribution. This aligns with the 5-year horizon focus on infrastructure robustness.