Bitcoin Hashrate Drops 8% as Xinjiang Bitcoin Mining Farms Shutdown

Bitcoin Hashrate Drops Amid Shutdown of Proof of Work Mining in China

Is BTC facing another major mining shock after China’s latest crackdown? The latest data shows Bitcoin Hashrate Drops sharply, raising fresh questions about network strength, miner profits, and what comes next for BTC.

Bitcoin Hashrate Drops 8% in a Single Day

The 8% drop after large-scale mining shutdowns in Xinjiang, China. According to blockchain analysts and Nano Labs founder Kong Jianping, the total network hash rate fell by around 100 EH/s in just 24 hours. As of December 15, 2025, BTC’s total hashrate stands close to 1,200 EH/s.

This sudden decline means a massive amount of computing power has gone offline. Reports suggest that at least 400,000 machines stopped working almost at the same time. Most of these rigs were operating in farms located in Xinjiang, a region known for low-cost power.

Source: X (formerly Twitter) 

Why Xinjiang Bitcoin Mining Farms Shutdown

The event is linked to a new directive issued by authorities in Xinjiang on December 5. The notice ordered an immediate shutdown of all virtual currency operations of miners. While China banned crypto mining nationwide in 2021, some miners continued operating quietly using cheap electricity.

Now, those power sources are reportedly being redirected to AI data centers and industrial use. The exact trigger behind the sudden enforcement remains unclear, but the result is clear: this shutdowns are once again reshaping the global hashrate.

Older Machines Hit the Hardest

Kong Jianping explained that with an average hashrate of 250 terahashes per machine, the shutdown of 400,000 rigs matches the scale of the Hash-rate Drops seen this week. Data from F2Pool shows that many older mining machines are now running below their shutdown price.

High network difficulty has made outdated hardware unprofitable. As electricity prices go up and rewards dwindle, miners operating with outdated hardware have no choice but to shut down, which further presses the bitcoin mining community.

Impact on Network and Bitcoin Price Today

Although this event have negative implications for security, analysts assert that everything is in order in this respect. BTC has withstood far more dramatic occurrences in the past, such as a Chinese ban in 2021. Moreover, this network is self-regulating because of difficulty levels, which will soon make it easier to mine.

As of writing, the bitcoin price is $89,873 with no major change in price in the last 24 hours. The RSI and MACD indicators are neutral in momentum, based on crypto live charts. 

What Comes Next 

In the past, when Bitcoin Hashrate Drops, capacity to mine shifts to other parts of the world. The United States, Kazakhstan, and Russia have already become major hubs for mining. A future difficulty adjustment may boost miners' returns and promote a balanced network.

For now, what is most evident in the latest BTC news is how regulation, energy, and technology affect crypto in today’s environment. While short-term loss is evident, coin’s resilience in the long term is against another reality check.

Disclaimer: This article is for informational purposes only, kindly do your own research before investing.