Bitcoin Hash Rate Falls by Most Since 2024 Halving, and China May Be Reason

As was recently revealed by Matthew Sigel, Head of Digital Asset Research at VanEck, Bitcoin’s hash rate has fallen by about 100 EH/s, what makes it the steepest drawdown since the 2024 halving event. With current total network hash rate estimated at 1,200-1,300 EH/s under prevailing difficulty, the loss represents about 8% of global computing power securing the network.

Nano Labs CEO, whom Sigel cited, estimated the scale of the shutdowns using an average of 250 TH/s per mining unit, placing the implied number of offline machines at around 400,000. 

For him, the root of the problem is in Bitcoin’s mining operations in China’s Xinjiang region, where facilities have reportedly been shutting down progressively.

At the same time, a Chinese regulatory notice made the rounds on social media, which states that local companies are being asked to cooperate with authorities on disclosures related to virtual currency mining activity, with a fixed response deadline in early December 2025. 

While the document does not announce a blanket ban, the timing aligns closely with the observed hash rate contraction.

China FUD drags Bitcoin price down

Needless to say, Bitcoin price action has remained weak. The cryptocurrency has failed multiple attempts to sustain levels above $90,000 per BTC, with each rejection followed by brutal sell pressure. 

Interestingly, trading data shows elevated volumes on Binance during downside moves rather than during rebounds, suggesting that the core place where  distribution happens is a black-and-yellow crypto exchange. 

It isno surprise that market participants have raised the possibility that Chinese miners affected by shutdowns are liquidating Bitcoin reserves to fund operational exits, equipment relocation or power loss adjustments. 

There is no public confirmation tying specific selling flows to Chinese miners, and Binance’s regulatory access within China remains limited, but the overlap between hash rate losses and sustained spot selling has definitely drawn attention.