Bitcoin alert: The network loses 10% of its power in one day, and here's why.

Thousands of ASIC mining rigs have been taken offline, causing a 10% drop in the blockchain network's hash rate.

The technological infrastructure supporting the market's leading cryptocurrency experienced a seismic shift this week. The Bitcoin network, recognized worldwide as the most robust and secure blockchain in the digital ecosystem, registered a sharp decline in its computing power, setting off alarm bells among analysts. 

The logs showed a decrease of approximately 10% in the network's total processing capacity within hours, a phenomenon that rarely occurs so precipitously without a major external cause. The figures dropped from 1,22 zettahashes per second (ZH/s) to... below 1,10 ZH/s, which marks one of the most significant setbacks in the last year.

However, this decline in Bitcoin's computing power has not occurred by chance. Rather, it is a direct consequence of geopolitical and energy shifts in Asia. 

A blackout affecting thousands of ASICs in Xinjiang shook Bitcoin's hashrate

Jianping Kong, former co-chairman of hardware giant Canaan, has shed light on the situation by attributing this decline to sudden closure of operations in the Xinjiang regionThis area of ​​China has historically been a hub for Bitcoin mining due to its vast energy resources, and data suggests that local authorities or conditions have forced the shutdown of a massive fleet of mining equipment. 

The magnitude of the blackout is equivalent to removing some 400.000 state-of-the-art ASIC machines from the game board, assuming an average performance per unit, which demonstrates the enormous scale of the infrastructure that still operates in the shadows within the Asian giant.

BTC miners persist in China

Although China maintains strict prohibitions on cryptocurrency transactions and mining, its operations continue to represent between 15% and 20% of Bitcoin's global hashrateAccording to estimates from Hashrate Index and CryptoQuant, local miners and businesses are taking advantage of the cheap electricity in areas such as Xinjiangwhere they operate in a regulatory limbo that allows them to keep the network running and obtain solid returns.

However, the recent shutdown of thousands of mining rigs in this region has had an immediate impact on short-term network stability metrics. 

Matthew Sigel, head of digital asset research at VanEck, confirmed that the 30-day moving average hash rate has suffered its most severe contraction since April 2024. According to him, we went from observing a sustained power of 1,22 zettahash per second to seeing the indicators struggling to stay just above 1 ZH/s. 

Although the Bitcoin network hashrate measurement is always an estimate derived from the block resolution rate and not an exact audit, the trend is undeniable and reflects the volatility inherent in relying on jurisdictions where the activity lacks explicit legal backing.

Bitcoin withstands Chinese blackout and strengthens in the US.

Recent events in Xinjiang do not threaten Bitcoin's core, but rather highlight how robustly its code adapts to external pressures. The network's global computing power is declining just as miners struggle with revenues barely covering costs, as the so-called hash price hovers around $37 per petahash per second, near its lowest levels in five years. However, with fewer rigs competing from China, the mining difficulty will decrease by about 3% in the next automatic adjustment. It eases the burden on the miners who are still standing.because it allows them to earn more rewards with the same machinery.

On the other hand, all of this could encourage greater geographic dispersion and strengthen the industry in the West. While China grapples with forced shutdowns and disruptions, the United States is consolidating its position with regulated and growing projects, such as the new facility of Sangha Renewables in Texas that It runs entirely on solar power.Initiatives like this increase mining capacity in North America and reduce the grid's energy dependence on Asia, making it more resilient to local political interventions.

In the end, the Bitcoin network demonstrates that it can handle the sudden shutdown of some 400.000 ASIC machines in a single day without any issues, while continuing to produce blocks stably and moving towards greater maturity.