Sharp drop in Bitcoin hashrate due to closure of mining farms in Xinjiang
Yesterday, the Bitcoin network's hashrate dropped by approximately 100 EH/s, or 8%, due to the shutdown of at least 400,000 mining rigs. This was caused by the closure of mining farms in Xinjiang, China.
Source X
Such a significant hashrate decrease can affect transaction processing speed and network security in the short term. Xinjiang was one of the largest cryptocurrency mining hubs worldwide, and its closure is forcing miners to relocate or find new operational locations.
It is expected that the hashrate will stabilize over time as miners move to other regions or resume operations with new capacities.
