Bitcoin Hash Rate Plunges: Xinjiang Mine Closures Trigger Post-Halving Low

The Bitcoin network is currently experiencing its most dramatic drop in hash rate since the pivotal “halving” event in April 2024. This significant downturn is directly attributed to widespread reports of large-scale mine closures across China’s Xinjiang region, sending ripples through the global cryptocurrency mining industry.

Matthew Sigel, Head of Digital Asset Research at asset management titan VanEck, was among the first to highlight the alarming decline, noting a striking fall in Bitcoin’s 30-day moving average hash rate. This signals a period of intense pressure and operational challenges for Bitcoin miners worldwide.

Bitcoin Hash Rate Falls by Most Since 2024 Halving

Ex-Chairman of $CAN says 400k BTC mining machines shut off in China https://t.co/4RQ0O2esh3 pic.twitter.com/q5OopJq10M

— matthew sigel, recovering CFA (@matthew_sigel) December 15, 2025

Understanding the Hash Rate Implosion

Hash rate, a fundamental metric in the Bitcoin ecosystem, represents the collective computational power dedicated to securing the network and validating transactions. It is a crucial indicator of miner participation and the overall robustness of network security. A rapid decline, such as the one currently observed, often underscores a challenging environment for miners, testing their profitability and operational viability.

Jack Kong, former Co-Chairman of leading mining hardware manufacturer Canaan, provided specific figures, stating on Monday that the total network hash rate had plummeted by approximately 100 EH/s (Exahashes per second) compared to the previous day, representing an 8% drop. Based on an average mining machine hash rate of 250 TH/s (Terahashes per second), this suggests that over 400,000 Bitcoin mining machines have been taken offline.

Kong had foreshadowed these events last week, issuing a warning about impending Bitcoin mine shutdowns in Xinjiang and remarking, “America wins again by doing nothing,” implying a strategic advantage for regions less burdened by regulatory crackdowns.

China’s Shifting Role in Global Bitcoin Mining

The timing of these closures is particularly ironic. Just one month prior, China had reportedly re-emerged as the world’s third-largest Bitcoin mining nation, contributing approximately 14% of the global hash rate. This brief resurgence indicated that despite the comprehensive mining ban implemented in 2021, significant, albeit more covert and dispersed, mining operations continued within the country. The mass exodus of miners that followed the 2021 prohibition, it appears, has not yet fully concluded.

If these large-scale shutdowns are confirmed, China’s influence on the global Bitcoin mining landscape is poised for another rapid contraction. This development could further accelerate the decentralization of mining power, opening up additional opportunities and market share for miners in North America and other regions.

Data from on-chain analytics platform Glassnode supports these observations, showing that the Bitcoin network’s total hash rate has decreased from its recent peak of around 1.1 ZH/s (Zettahash per second) to just over 1 ZH/s.

Miner Profitability Under Duress

At the core of this significant hash rate correction lies the harsh reality of continuously shrinking miner revenues. The “Hash Price,” a metric reflecting a miner’s earnings per unit of hash rate, is currently hovering around $37 per PH/s (Petahash per second), marking a five-year low. This sustained period of reduced profitability makes it increasingly difficult for less efficient or higher-cost mining operations to remain viable, forcing many to power down their equipment.

Bitcoin’s Inherent Resilience: The Difficulty Adjustment

Despite the immediate challenges, Bitcoin’s unique, self-regulating mechanism is designed to adapt to such fluctuations. As the network’s hash rate declines, Bitcoin’s “mining difficulty” is expected to adjust downwards by approximately 3%. This automatic adjustment will offer a much-needed lifeline to the remaining, well-capitalized miners capable of enduring the current market conditions, making it incrementally easier and more profitable for them to mine subsequent blocks.

Currently, Bitcoin’s mining difficulty stands at approximately 148.2 T, slightly below its historical peak.