Bitcoin Hashrate Drops 12% in Worst Drawdown Since China Mining Ban: CryptoQuant

Why It Matters

The abrupt hashpower contraction strains miner profitability and could trigger further difficulty cuts, affecting Bitcoin’s security and market confidence. It highlights the vulnerability of mining operations to regional power disruptions.

Key Takeaways

• Hashrate fell 12% since Nov 11
• Network hash now ~970 EH/s, lowest since Sep 2025
• Miner revenue dropped to $28M, below average
• Production fell from 77 to 28 BTC daily
• Miner P&L index hit 21, lowest since Nov 2024

Pulse Analysis

The recent winter storm exposed a geographic concentration risk for Bitcoin mining in the United States. Power curtailments forced major operators to shut down rigs, pulling the network hashrate below 1 EH/s and reducing the overall security margin that protects the blockchain from attacks. This abrupt drop mirrors the post‑China‑ban reset of 2021, reminding investors that external factors such as weather and grid reliability can quickly reshape mining dynamics.

From a financial perspective, the storm’s impact reverberated through miner economics. Daily mining revenue slumped to $28 million, a stark contrast to the $45 million levels seen just days earlier, while production from the largest publicly listed miners fell from 77 to 28 BTC per day. The Miner Profit and Loss Sustainability Index, now at 21, signals that a growing share of miners are operating at a loss despite recent difficulty reductions, raising concerns about cash‑flow pressures and potential equipment idling.

Looking ahead, sustained hashpower weakness could prompt the Bitcoin protocol to implement further difficulty adjustments, offering marginal relief but also signaling a softer market environment. Investors should monitor regional power policies and weather forecasts as leading indicators of mining stability. Diversifying mining locations and investing in resilient energy sources may become strategic imperatives for operators seeking to mitigate similar disruptions in the future.