The total BTC hash rate across the network plummeted by 30% in 48 hours. The truth behind this surge and drop deserves a thorough analysis.

Yesterday, everyone was celebrating and waiting for Bitcoin to hit new highs, but reality hit back hard—global Bitcoin hash rate dropped nearly 30% in just two days, a scale comparable to a halving event, leaving the entire market stunned by this sudden change.

The root cause points to an underground mining cluster in Xinjiang. Since China banned mining in 2021, miners there have secretly built an entire industry chain, relying on outrageously cheap electricity. In this "regulatory blind spot," miners quietly profited, but suddenly, regulatory authorities launched a surprise crackdown—cutting off power supply. Over 400,000 mining machines were paralyzed on the spot, and miners had no chance to move their equipment. Industry veterans say this is a thorough cleanup, with no room for negotiation. Some speculate that certain miners became too arrogant, flaunting their mining profits on social media, which drew regulatory attention.

The hardest hit are the photovoltaic miners in Qinghai. They leased abandoned solar power stations for mining, with electricity costs as low as a few cents per kWh, expecting to recoup their investment in just half a year with high profits. Now, the power stations are sealed off, and overnight, their dreams turned back into reality—an abrupt hard landing.

This rapid shift of Eastern hash power has completely rewritten the global mining landscape. U.S.-based compliant mining pools are celebrating, Kazakhstan’s mining farms are also welcoming miners, and with Ethereum’s upgrade reducing mining difficulty and mining rig rental prices plunging, those who had already laid out plans abroad are quietly happy.

The current question facing the industry is: Is this crackdown a one-time cleanup, or a signal that a new wave of global hash rate migration is about to begin? Will miners collectively move abroad to find compliant mining farms, or continue to mine domestically, seeking the next electricity price advantage? These changes are not only reshaping the mining industry itself but will also directly influence the price trends of mainstream cryptocurrencies like Bitcoin and Ethereum.

Hash rate flow is often a barometer of market sentiment. When massive hash power shifts from one region to another, it usually indicates strategic moves by large institutions and market expectations for the future. This seismic change has already impacted short-term market trends, but the long-term chain reactions are just beginning. Paying attention to the pace and direction of hash rate migration can often give investors an early edge in bottom-fishing or market top-timing.