Chinese mining crunch drops bitcoin hashrate to three-month low

According to analysts, the Bitcoin mining campaign in China and the drastic reduction of Hashrate are behind the fall of Bitcoin.

Bitcoin mines in China's Xinjiang province are going out of business this week following another crackdown by Beijing. As many as 400,000 mining machines are offline, causing hashrate collapse.

A Bull Theory analyst said on Wednesday that Bitcoin is declining as selling pressure is stronger and coming from deeper sources.

“One of the main reasons is the resurgence of Chinese mining,” he added.

The network's hashrate dropped by 8 percent, which is a big step considering China still controls 14 percent of the world's hash power, he said.

Selling BTC Asia Wells

The analyst added that Asian OG holders had started selling weeks ago in anticipation of renewed restrictions, while data on the chain confirmed that long-term holdings had increased in the past two months. There were also miners who closed mining farms and had to sell BTC reserves and equipment to cover their losses.

Additionally, Asian exchanges such as Binance, Bybit and OKX showed a consistent net position selling through Q4, while US exchanges such as Coinbase continued to see net buying, he added.

This is not panic selling, this is supply changing hands. And the price will often be weak until the pressure wears off.

Why is bitcoin still disappearing when institutions are making billion dollar purchases?

Bitcoin will not go down because the fundamentals are weak.

Selling pressure is stronger and coming from deeper sources and is decreasing.

One of the main reasons is that China's mining boom is coming… pic.twitter.com/QBAG8PKAKh

— Bull Theory (@BullTheoryo) December 17, 2025

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Bitcoin's hashrate fell 10% from 1,160 EH/s in October to ~1,045 EH/s in December, thanks to three consecutive negative corrections, Luxor reported on Wednesday.

He pointed out that the trend is driven by three factors.

“Bitcoin price declines push legacy hardware into negative margins, regional enforcement measures remove capacity from major miners, and rising winter energy costs cause current cuts across North America.”

This decline in hashrate is driven by price pressures, current energy costs and targeted regulatory pressure, all of which are simultaneously squeezing marginal miners.

Additionally, the hashprice, which measures how much a miner can earn from a given amount of hashrate, is at an all-time low of $0.036 per terahash per day, according to Luxor. Declining income and rising costs will put more pressure on miners to sell.

BTC continues to fall

Bitcoin is under a lot of pressure this Hashret decline as it continues to weaken.

In addition to another pump and dump done by Derivative Digits, the property was down for the day after failing to recover $87,000.

It was trading at $86,560 at the time of writing, at the lower bound of the range-bound channel established in late November.