Jona Killius

China
's 2021 ban on Bitcoin mining caused an immediate and significant drop in the network's global hash rate, by more than 50% in some estimates. However, the network proved resilient, with miners quickly relocating to other countries, and the hash rate fully recovering within approximately six months. 
Initial Impact of the 2021 Ban
In May and June 2021, Chinese authorities systematically shut down mining farms across the country as part of a comprehensive ban on all cryptocurrency trading and mining. Since China hosted an estimated 60% to 70% of the global hash rate before the ban, the impact was dramatic. The total computing power securing the network fell sharply, leading to the largest single difficulty adjustment in Bitcoin's history when the difficulty dropped by 28% in July 2021. 
Global Recovery and Relocation
The network's design includes an automatic difficulty adjustment that makes it easier for remaining miners to find blocks when the hash rate drops. This mechanism ensured the network continued to function and allowed miners time to relocate. 
New Mining Hubs: Miners primarily migrated to countries with favorable regulations and cheap electricity, such as the United States, Kazakhstan, and Russia. The U.S. quickly emerged as the top destination, hosting the largest share of the global hash rate.Rapid Recovery: The network hash rate began to recover almost immediately after the initial shock and by December 2021, it had not only recovered but reached new all-time highs, fully paring back the losses incurred from the China ban. This demonstrated the network's resilience and capacity to adapt to major geopolitical events. 
Current Status
Despite the official ban remaining in effect, underground and semi-official mining operations have quietly resumed in China, primarily in energy-rich provinces like Xinjiang where excess power is available. As of late October 2025, China has a reclaimed global mining share of approximately 14%, ranking it as the third-largest mining hub in the world, behind the U.S. and Russia. The current network hashrate (24hr average) is approximately 868.58 EH/s. 
Recent reports from December 2025 note another hash rate drop, estimated around 8% (or 100 EH/s), again linked to shutdowns in China's Xinjiang province, which highlights the ongoing, albeit diminished, influence of Chinese operations on the global network.