Within a week, global Bitcoin hash rate plummeted by over 17%—behind this figure is a concentrated crackdown on mining farms in Xinjiang. It is reported that at least 400,000 mining machines went offline simultaneously, causing the network’s total hash rate to drop from its peak to a low of 988 EH/s.

This is no small matter. The region once contributed approximately 14% of the world's mining power thanks to its cheap electricity resources. Although a ban was explicitly issued in 2021, the hash rate continued to operate silently there. Last month’s signs of recovery seemed to anger regulators, prompting a targeted crackdown.

In the short term, the impact is tangible. A sharp decline in hash rate means a decrease in network hash power, which theoretically makes the network more vulnerable to attacks. However, there is an interesting counterpoint: before the next difficulty adjustment, miners still online will see their mining rewards surge. For most small miners, this is a sweet breathing space.

Deeper issues are emerging. Miners now face real choices: continue mining underground on the dark web, or migrate to compliant markets like the US or Kazakhstan. Historically, mining pools in the US and Kazakhstan are likely to become the main recipients.

This event acts like a mirror. It exposes the Bitcoin network’s dependence on regional energy policies—indeed, this appears fragile. But from another perspective, it is also a forced test of the "decentralization" promise. Hash power is compelled to redistribute and flow globally; in the long run, the network may become more resilient because of this.

For holders, what does this mean? Short-term market sentiment may fluctuate, but the fundamental logic of BTC and ETH remains unchanged. After each painful migration of hash power, the network has always repaired and evolved itself. Instead of panicking, it’s better to take this opportunity to examine assets that are truly rooted in strong ecosystems and have community consensus—such projects often endure cycles.