China's Bitcoin "Gray Empire" Strikes a Heavy Blow!

The crypto world is once again turbulent! Just as $BTC 's price hovers above $85,000 and teeters on the edge, a sudden "Mining Destruction Storm" sweeps through Xinjiang, China—all local Bitcoin mining farms shut down overnight! In just two days, the global network hash rate plummeted by nearly 30%! This catastrophic, cliff-like decline has set the record for the most severe single hash rate contraction since the 2024 halving.
Xinjiang, once known as the "Underground Kingdom" of Bitcoin mining, secretly contributed a significant share of the global hash rate thanks to cheap coal power and lax enforcement. After the nationwide ban in 2021, it became a "gray paradise," with miners operating discreetly to avoid regulatory radar. However, this storm came without warning: regulatory authorities conducted surprise inspections, instantly cutting power to hundreds of high-performance ASIC miners, forcing over 400,000 units offline. Industry insiders have called it a "total defeat"—no warning, no buffer, miners could only watch helplessly as their machines went cold.
This raid was foreshadowed: last month, videos showcasing mining farms flaunting wealth flooded major social platforms, raising high-level vigilance. The central government quickly ordered action, with multiple provinces in the region simultaneously cracking down, taking down Xinjiang mining operations. Previously, China's hash rate accounted for over 50%, but now this "big chunk" has been cut, instantly reshuffling the global hash rate landscape, with overseas pools in the US, Kazakhstan, and others potentially becoming the biggest winners.
What’s even more lamentable is the plight of "solar-powered miners." Miners in Qinghai and other regions had contracted abandoned solar power stations, using offline solar panels with energy storage cabinets to "extend life"—the cost per kWh was only 5 cents, and after adding storage, it was just 30 cents, far below the $1 level in Europe and America. But now, with regulatory iron fists smashing down, mining machines confiscated, and power stations sealed, the "lucrative dream" of quick half-year returns has instantly shattered.
Although the Bitcoin network has suffered a heavy blow, its core mechanism remains resilient: difficulty adjustment will soon kick in, and in the short term, remaining miners' profits may even surge. However, this wave of "China Hash Rate Earthquake" undoubtedly sounds an alarm—global mining is highly concentrated in the gray area, and any policy change could trigger a chain reaction. Where will miners go from here? Continue underground struggles, or go overseas entirely?