Bitcoin Hashrate Rebounds After Xinjiang Mining Fears
Recent reports of a major Bitcoin mining crackdown in China’s Xinjiang region caused concerns, but data from TheMinerMag indicates the actual impact was limited and temporary. The Bitcoin network did experience a brief hashrate decline linked both to Xinjiang and power curtailments in the U.S. Most mining pools quickly recovered to near previous levels, resulting in a net decline of about 20 exahashes per second—much less than early estimates of 100 EH/s. TheMinerMag found the largest hashrate drops during the incident were reported in North America; attributing the whole decline to Xinjiang is an overstatement. Reports suggest that the disruptions in Xinjiang likely stemmed from compliance or operational issues, not a broad state crackdown. Despite China’s 2021 ban, it still accounts for 15–20% of global Bitcoin mining, with Xinjiang favored for its cheap, abundant energy. Local governments have supported data infrastructure, with some excess capacity leased to miners, contributing to continued mining activity despite regulatory pressures.
