Bitcoin mining has shown remarkable resilience following recent rumors of significant disruptions in Xinjiang, China. Reports claimed that regulatory crackdowns had led to a steep decline in the network hashrate, but data indicates that the actual impact was significantly less severe than initially suggested.
On December 13, allegations surfaced regarding a crackdown that supposedly removed 100 exahashes per second (EH/s) from the Bitcoin network. However, further analysis revealed that the majority of the hashrate drop was attributed to power curtailments in North America, particularly during cold weather, rather than a widespread shutdown in China. Key mining pools such as Foundry USA and Luxor reported a combined drop of around 200 EH/s, with Foundry USA alone losing approximately 180 EH/s.
Despite the initial panic sparked by a statement from Nano Labs founder Jack Jianping Kong, which suggested that inspections in Xinjiang led to the shutdown of 400,000 mining rigs, the reality on the ground was different. Data from various mining pools indicated that the decline in hashrate was temporary and primarily originated from North American operations.
Chinese pools, including Antpool and F2Pool, indeed experienced a decline of about 100 EH/s, aligning with the figures circulated on social media. However, this decline does not confirm that all losses were from Xinjiang, as many pools route hashrate from multiple regions, complicating the attribution of the drop to localized regulatory actions.
By December 17, the situation had stabilized, with most large mining groups recovering their power levels to exceed pre-incident metrics, indicating that the disruption was short-lived. The total network hashrate was reported to be only about 20 EH/s lower than previous peaks, underscoring the robust nature of Bitcoin”s mining ecosystem.
Network Resilience in the Face of Regulatory Changes
Broader metrics indicate that the Bitcoin mining sector remains strong, with the 7-day moving average of hashrate showing only marginal declines. The network”s 30-day averages are close to recent highs, and a minor downward adjustment in difficulty is anticipated, which may provide some relief to miners facing lower hash prices.
As of 2025, Bitcoin”s mining power has surged from approximately 700 EH/s to over 1 ZH/s (1,000 EH/s). This growth is largely attributed to significant upgrades in mining equipment and the expansion of mining operations across diverse geographic locations. The recent events in Xinjiang highlight how localized regulations can create short-term fluctuations but are less impactful on the global mining landscape.
Ultimately, Bitcoin”s mining network continues to thrive despite regulatory pressures, reflecting a shift towards a more decentralized mining infrastructure. With mining operations now distributed globally, the influence of specific regions on overall network performance has diminished significantly, ensuring Bitcoin”s resilience in the evolving regulatory environment.
