China’s Bitcoin Hashrate Rebounds to 14%, Stoking Profitability and Concentration Concerns
China’s Bitcoin hashrate has rebounded to around 145 EH/s—14% of the global network—reclaiming third place behind the US and Russia after the 2021 mining crackdown. New activity in low-cost regions such as Xinjiang and Sichuan, where operators use legacy farms, private setups and cloud-style arrangements to mask mines, has driven this rebound. Hardware maker Canaan reports domestic sales rising from 2.8% of revenue in 2022 to over 30% in 2024 and 50% in Q2 2025, indicating fresh investment in mining equipment.
However, hashprice—payout per unit of hashrate—has hit record lows this year as Bitcoin prices and transaction fees weaken and mining difficulty climbs, squeezing smaller miners. This resurgence coincides with Bitcoin’s October peak at $126,000 and policy signals like Hong Kong’s stablecoin bill and Beijing’s yuan-backed stablecoin plan. The return of significant Chinese capacity raises concerns about geographic concentration and uneven enforcement of the ban. Traders should watch Bitcoin hashrate fluctuations, evolving hashprice levels and upcoming policy shifts to assess market impact.
Neutral
The rebound of China’s Bitcoin hashrate to 14% of the global network boosts network security but raises centralization concerns amid uneven enforcement. Record-low hashprice limits miner profitability and pressures smaller operations, with policy signals in Hong Kong and Beijing adding regulatory uncertainty. In the short term, fluctuating hashprice and difficulty could temper miner activity without directly driving price swings. Over the long term, clearer stablecoin regulations and sustained equipment investment may stabilize mining economics and support network growth, balancing centralization risks. Thus, the net effect on Bitcoin’s price is expected to be neutral.