Bitcoin hash rate plunges as China shuts down 400k mining machines; BTC crash next?

Bitcoin’s (BTC) network computing power has dropped sharply amid renewed concerns over the impact of China-linked mining disruptions on the broader cryptocurrency market.

As of press time on December 15, Bitcoin’s hash rate stood at 876.4 EH/s, down from about 930.06 EH/s on December 14, marking a day-over-day decline of roughly 5.8%. 

On a weekly basis, the pullback is far steeper, with the hash rate falling from around 1.27 ZH/s, or 1,270 EH/s, about a week earlier, a near 31% contraction in network computing power.

China’s renewed crackdown 

Indeed, market participants attribute the move to a concentrated regional shutdown rather than to weather-related issues or isolated hardware failures.

In this line, attention has centered on China’s Xinjiang region after Jianping “Jack” Kong, founder of Nano Labs and former co-chairman of ASIC manufacturer Canaan, linked the hash rate drop to a fresh enforcement wave targeting Bitcoin mining operations.

In an X post on December 15, Kong said an estimated 400,000 mining machines were shut down in a short period, removing a significant amount of hash power from the network.

Notably, Chinese crypto media have reported coordinated shutdowns at large mining facilities in Xinjiang, suggesting a renewed local crackdown rather than a new policy shift. 

Although China’s mining ban dates to 2021, enforcement has remained uneven, with several industrial parks reportedly affected at once.

The estimated shutdown, approximately 400,000 ASIC miners producing roughly 80–100 EH/s, corresponds to the recent decline in network hash rate. Major mining pools have also reported high double-digit week-on-week drops, consistent with a large regional outage.

In the near term, the hash rate drop may slow block production and boost miner profitability. Over time, Bitcoin’s difficulty adjustment will rebalance the network, restoring block times toward the ten-minute average.

Bitcoin price analysis 

Meanwhile, Bitcoin continues to show waning momentum after losing the $90,000 support zone. At press time, the asset was trading at $89,930, down about 0.1% over the past 24 hours. On a weekly basis, BTC is down more than 2%.

With renewed uncertainty stemming from developments in China, Bitcoin’s immediate task is to reclaim the $90,000 level to reduce the risk of further downside pressure.

Featured image via Shutterstock