Post-Halving Bitcoin Hashrate Decline Since 2024 Due to Machine Closures in China

Jakarta, Pintu News – The recent sharp decline in Bitcoin’s hashrate has made headlines in the crypto industry. According to Matthew Sigel, head of digital asset research at VanEck, this drop is the deepest since the halving in April 2024.

The main cause of this decline was the shutdown of approximately 400,000 Bitcoin mining machines in China, reported by former Canaan chairman Jack Kong. This event marks a tipping point in global mining dynamics and has far-reaching implications for the market.

Main Causes of Hashrate Decline

Jack Kong, former chairman of Canaan, revealed through a post on X that around 400,000 Bitcoin mining machines have been shut down in China. This drop in computing power amounted to about 100 exahash per second (EH/s), or an 8% decrease from the previous day. These shutdowns occurred mainly in the Xinjiang region, which is known as one of the largest Bitcoin mining centers in China.

This mining machine shutdown comes just a month after China again became the third largest Bitcoin mining hub in the world. Accounting for around 14% of the total global hashrate, this shutdown has a significant impact on the Bitcoin network as a whole. It also shows the geopolitical instability that can affect crypto mining operations.

Also Read: Bitcoin, Ether, and XRP Decline Increases Toward the End of 2026, Why?

Impact on the Bitcoin Ecosystem

Data from Glassnode shows that the total hashrate has dropped from around 1.1 zettahash per second to just above 1 zettahash per second (ZH/s). This decline coincides with continued pressure on miner revenues, with hash prices hovering near a five-year low of around $37 per petahash per second.

With mining difficulty expected to drop by around 3%, this provides some relief to miners’ earnings. Mining difficulty currently stands at 148.2 trillion (T), slightly below the previous record high. This difficulty adjustment is a direct response to the decrease in hashrate, aiming to keep the network smooth and secure.

Long-term Implications and Market Response

This decrease in hashrate may provide an opportunity for other countries to increase their mining capacity. Jack Kong mentioned that the United States might benefit from this situation without direct intervention. This shows a power shift in the Bitcoin mining industry that could affect global market dynamics.

Despite the decrease in hashrate, Bitcoin remains a highly watched asset in the crypto market. Investors and analysts continue to monitor this development to see how it impacts the price and stability of the network. The decline also highlights the importance of geographic diversification in mining operations to mitigate risks associated with government policies and other disruptions.

Conclusion

This sharp decline in Bitcoin hashrate marks a pivotal moment in the history of crypto mining. With various factors at play, from government policies to global market dynamics, the industry continues to face challenges that will shape its future. Stakeholders around the world will need to navigate these changes carefully to ensure the sustainability and security of the network.

Also Read: 7 Bitcoin (BTC) Facts Drop to Around $85,000, New Losses in the Global Crypto Spotlight

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FAQ

Q1: What is Bitcoin hashrate?

A1: Bitcoin (BTC) hashrate is a measure of the total computing power that secures the Bitcoin network.

Q2: Why the recent decline in Bitcoin hashrate?

A2: The decline is due to the closure of around 400,000 mining machines in China, mainly in the Xinjiang region.

Q3: How much hashrate was lost due to this shutdown?

A3: About 100 exahashes per second (EH/s) have been lost, which is a decrease of about 8% of the total hashrate.

Q4: What impact does this decrease in hashrate have on mining difficulty?

A4: Mining difficulty is expected to drop by around 3%, which may provide some relief to miners’ earnings.

Q5: How will this decline in hashrate affect the United States’ position in the global mining industry?

A5: The United States may benefit from this situation, as a decrease in mining capacity in China could allow the US to increase its mining capacity.

Reference

• Coindesk. Bitcoin Hashrate Sees Sharpest Post-Halving Drop Since 2024 Amid China Mining Machine Shutdowns. Accessed on December 18, 2025