Bitcoin Hashrate Plunges 8% Amid Sudden Mining Exodus in Xinjiang

The Bitcoin network experienced a sudden and significant mining shock in late 2025, with its global hashrate plummeting from 1,124 EH/s to approximately 1,078 EH/s. This sharp decline, representing a loss of nearly one-tenth of the network's computing power, was attributed to the simultaneous shutdown of an estimated 400,000 mining machines in China's Xinjiang region.

The event was flagged by mining executives as abnormal, differing from routine adjustments due to its concentrated and rapid nature. While the precise trigger remains unclear, it is believed to stem from regional enforcement, power constraints, or administrative pressure rather than a new nationwide policy shift in China. This disruption led to a fourth consecutive month of declining profitability for crypto miners in November 2025.

Despite the shock, the network's difficulty adjustment mechanism functioned as designed, having already increased by 25% compared to 2024 levels to maintain stability. Analysts, including Thomas "Tom" Lee, Chairman of BitMine Immersion (BMNR), have drawn parallels to past liquidity events like the 2022 post-FTX collapse, suggesting a potential for a V-shaped recovery. The incident has contributed to market volatility, with Bitcoin's price hovering near $92,000 at the time of reporting.