The Bitcoin network is showing surprising resilience as mining operations face one of their toughest periods in recent memory.
Quick Summary – TLDR:
- Bitcoin hashrate dropped 17.25% in a week, the steepest decline since the 2024 halving.
- Despite tighter mining revenues, network power still holds above 1,100 EH/s at times.
- Shutdowns in China’s Xinjiang region may be behind the sharp drop.
- Onchain fees are at historic lows, leaving miners heavily reliant on the block subsidy.
What Happened?
Bitcoin’s hashrate has plunged by over 17%, with recent data showing it fell to 867.63 EH/s compared to more than 1,200 EH/s earlier. This marks the sharpest drop since the April 2024 halving. Yet, the network continues to operate without disruption, and miners are keeping the blockchain running even under strained financial conditions.
🚨JUST IN: 🇨🇳China’s mining shutdown hit Bitcoin hashrate.
— Coin Bureau (@coinbureau) December 15, 2025
Bitcoin network’s hashrate dropped by ~100 EH/s yesterday, WuBlockchain reports.
Over 400,000 mining rigs reportedly went offline after mining farms in Xinjiang, China shut down. pic.twitter.com/T61P5pTNnB
Bitcoin Endures a Third Difficulty Cut
Over the past few weeks, Bitcoin has logged three consecutive difficulty reductions, the latest being a modest 0.74% adjustment at block height 927360. These cuts come as part of a combined 5.06% pullback since mid-November. However, they are still overshadowed by a previous 6.31% spike on October 29.
Despite the decreased mining difficulty, the network hashrate refuses to collapse completely. It remained above 1,125 EH/s as recently as this weekend, and blocks are currently being mined every 9 minutes and 25 seconds on average, faster than the 10-minute target. This could push the next difficulty epoch higher unless the trend reverses.
China Crackdown May Be Behind the Hashrate Dip
Industry analysts are pointing toward China’s Xinjiang region as a key reason for the recent drop in hash power. According to VanEck’s Head of Digital Asset Research, Matthew Sigel, the hashrate contraction of about 100 EH/s likely reflects shutdowns across several mining sites in the region.
Citing data from Nano Labs, the number of machines taken offline is estimated at around 400,000 mining units, based on an average of 250 TH/s per unit. The shutdowns reportedly follow a Chinese regulatory notice circulated online, requesting mining-related disclosures from companies, with a deadline in early December.
While the notice does not constitute a direct ban, its timing has fueled fears of another government crackdown. And though there is no confirmed link between miner selling and China, the coinciding sell pressure on Bitcoin’s price and elevated volumes on Binance have raised eyebrows.
Miner Revenues Remain Tight, With Little Relief in Sight
Even as miners power through operational challenges, they are earning less than ever. The hashprice, a measure of expected earnings per unit of hashrate, is down 9.85% from last month. It has dropped from $42.70 per PH/s to $38.49 per PH/s, largely due to weaker Bitcoin prices and minimal onchain transaction fees.
In fact, recent data shows fees now contribute just 0.54% to the total block reward. That is historically low and leaves miners almost entirely dependent on the fixed block subsidy. If Bitcoin prices continue to struggle, more miners may be forced to power down or relocate.
SQ Magazine’s Takeaway
I’ve been following Bitcoin mining for years, and this moment feels like another big test for the industry. Miners are under serious pressure, between falling revenues and geopolitical uncertainty, but they’re not giving up. The network’s ability to stay online despite a 17% hashrate drop shows just how robust it’s become. That said, low fee income and soft Bitcoin prices can’t be ignored. If things don’t turn around soon, we might see even more miners shut down or sell off assets. It’s resilience for now, but the squeeze is real.
