Repression in China brings down Bitcoin hashrate after cuts in Xinjiang.

• China reduces mining and affects Bitcoin hashrate.
• Shutdown in Xinjiang puts pressure on miners and liquidity.
• Asian market sells while US maintains purchases.

Bitcoin miners faced a new round of restrictions in China after operations were suspended in the Xinjiang region, one of the country's historical mining hubs. The measure removed approximately 400 mining machines from the network, resulting in an estimated 8% to 10% drop in Bitcoin's global processing power.

Industry reports indicate that Chinese authorities have intensified their scrutiny throughout the week, leading to the immediate shutdown of local data farms. According to market analyses, China still accounts for approximately 14% of the global hashrate, making the impact significant for the security and operational dynamics of the network.

The firm Bull Theory assessed that the hashrate reduction is occurring amidst broader selling pressure. According to the analysis, Asian Bitcoin holders had begun reducing their positions weeks before the official announcement, anticipating stricter regulations. On-chain data indicates an increase in selling by long-term investors over the past two months.

With the shutdown of operations in Xinjiang, several mining farms began liquidating Bitcoin reserves and equipment to cover costs and losses. This movement contributed to an increase in supply in the spot market, especially on Asian exchanges. Platforms such as Binance, Bybit, and OKX recorded consistent net sales during the fourth quarter.

In contrast, American exchanges like Coinbase maintained net purchases during the same period. This regional divergence helped keep Bitcoin near the lower limit of the price range formed at the end of November, without enough strength to recover recent highs.

Luxor data shows that the network's hash rate dropped from approximately 1.160 exahashes per second in October to approximately 1.045 EH/s in December. This movement resulted in three consecutive negative difficulty adjustments, a sign of continued decline in mining capacity.

Luxor attributed the scenario to a combination of factors. These include the drop in the price of Bitcoin, which pushed older equipment into negative margins, regional regulatory actions that removed significant capacity, and the seasonal increase in energy costs during the winter, especially in North America.

Another indicator under pressure is the hash price, a metric that reflects the expected revenue per unit of computing power. According to Luxor, this indicator has reached historic lows, increasing the financial stress on miners.

With less active hashrate and a greater need for liquidity, the mining sector continues to adjust operations, while the market watches how the geographical redistribution of mining may influence the network and the price behavior of Bitcoin in the coming months.