Bitcoin Hashrate Drops to Three‑Month Low Amid China Crackdown
Bitcoin’s hashrate has fallen to its lowest level in three months as China intensifies its crackdown on mining operations in the Xinjiang province.
Mining Machines Taken Offline
Around 400,000 mining machines have been taken offline following Beijing’s latest enforcement actions. This has resulted in an 8% decrease in the network’s hashrate, a significant drop considering China still controls approximately 14% of the global hash power.
Analyst Insights
Analysts indicate that Asian OG holders began selling their Bitcoin holdings weeks ago in anticipation of renewed restrictions. On‑chain data confirms this trend, showing increased selling by long‑term holders over the past couple of months. Additionally, the closure of mining farms has led to miner capitulation, with many selling their BTC reserves and equipment to cover losses.
Exchange Activity
Asian exchanges such as Binance, Bybit, and OKX have seen consistent net spot selling throughout the fourth quarter. In contrast, US exchanges like Coinbase have experienced continued net buying.
Hashrate Statistics
Bitcoin’s hashrate has decreased by 10% from around 1,160 EH/s in October to approximately 1,045 EH/s in December. This decline is attributed to a combination of falling Bitcoin prices, regional enforcement actions, and rising winter energy costs.
Hashprice at Record Low
The hashprice, which measures the earnings a miner can expect from a specific amount of hashrate, is currently at an all‑time low of $0.036 per terahash per second per day. This is putting additional pressure on miners to sell their holdings.
Current Bitcoin Price
Bitcoin is currently trading at $86,560, down from $87,000, as it continues to weaken amid the ongoing hashrate slump.
Conclusion
The convergence of regulatory pressure, seasonal energy costs, and declining Bitcoin prices is squeezing marginal miners, leading to a significant drop in Bitcoin’s hashrate and price.
