Bitcoin BTC$86,137.94 Despite being officially banned in 2021, mining is making a big comeback in China, according to Reuters.
China had largely disappeared from the global landscape, but by October it had risen to third place with an estimated 14% share of global mining, according to the Hashrate Index.
This resurgence is being driven by miners and companies operating quietly in areas with abundant and cheap electricity, particularly in Xinjiang, where surplus power and rapid data center construction are creating favorable conditions.
Miners told Reuters that surplus electricity in places like Xinjiang and Sichuan is fueling new underground projects, and some former miners are returning. Data provider CryptoQuant estimates that 15-20% of the world’s mining capacity is currently operating in China.
According to the article, Canaan, a major mining rig producer, saw a sharp recovery in domestic sales, boosted by rising Bitcoin prices and uncertainty surrounding U.S. tariffs that slowed overseas demand.
Although the Chinese government has not publicly changed its stance, it appears to be softening its approach. Hong Kong’s stablecoin laws and the debate over renminbi-backed stablecoins suggest a more flexible outlook for digital assets.
Hash price hits all-time low
Bitcoin hash prices hit a new all-time low on Friday. This metric represents the revenue a miner can expect to earn from a certain amount of hashrate. According to Luxor, hash price fell to 34.2 PH/s.
Hash price is determined by four main inputs: network difficulty, Bitcoin price, block subsidies, and transaction fees.
Hash price typically increases when Bitcoin price or fee amount increases and decreases when mining difficulty increases.
Bitcoin is down more than 30% from its October peak, and combined with lower transaction fees and a network hash rate of just over 1 zettahash (10% below recent highs), miner profits have been pushed to new lows. The next difficulty adjustment is scheduled for Wednesday, with a drop of just over 2% expected.
