Bitcoin's BTC$86,189.53 According to Matthew Siegel, head of digital asset research at VanEck, the 30-day simple moving average (SMA) hashrate has seen its steepest decline since the April 2024 halving.
Bitcoin's hashrate measures the total computational power securing the network.
Jack Kong, former chairman of Canaan, said in a post on X that as many as 400,000 mining machines have recently been shut down in China. Kong said computing power was down by about 100 exahashes per second (EH/s) compared to the previous day, which equates to an 8% drop. Based on an average of 250 terahash per second, this equates to more than 400,000 mining machines being shut down.
Kong also said that farms in Xinjiang were being shut down one after another, suggesting the United States benefited without direct intervention.
The comments come just a month after China re-emerged as the world's third-largest Bitcoin mining hub, accounting for about 14% of the global hashrate.
Glassnode data shows that the total hash rate has dropped from about 1.1 zettahash per second to just over 1 (ZH/s). This decline coincides with continued pressure on miner revenues, with hash prices hovering around $37 per petahash/second, the lowest level in nearly five years.
Bitcoin mining difficulty is currently expected to drop by around 3%, temporarily reducing profits for miners. The index currently stands at 148.2 trillion (T), just below its all-time high.
